I believe I am having the same problem as the OP. I have a new (Christmas) TIU (rev. L), WIU, and a new PS3 steam engine, this is in HO scale, and an android tablet with the premium app installed (and on the MTH network). The WIU firmware has been updated, the TIU is updated to version 6.1. I am using a 16V DC transformer in at fixed #1. I have used fixed 1 out to the track. Then when that did not work I used fixed 2 out. Either way I can not add an engine. I am just using a small loop (5'x4') of clean track.
The PS3 engine starts when power is on: lights, smoke, sound, & talking. I used the app to add an MTH engine and no engine is found. I am able to run conventional engines, using the transformer for speed control, while it is setup to go through the TIU. All this tells me I have good power to the tracks.
I have both of Barry's ebooks, following them as best I can with trouble shooting, but I am at a loss. I have invested a lot for this new control system. It has so much to offer, but I can't run a PS3 engine yet.
Any advice?