Steps Taken:
Reinstalled the WHOLE program including appdata
Restarted computer
im testing this bypass tonight but im sure you maybe having this problem as the port is being used by another program....make sure skype and windows live are shut down while signing in on ps3. This should sort the problem. I will get back to you later and let you know if i had any probs and if not a step by step tut for you to rectify the problem.....