Try running the simulator first, THEN connecting to it. Some PCs timeout cuz Windows/AntiVirus takes a while loading it for the first time, so the Link's timeouts are a little too "fast".
In the LaunchPad, the Application's pane 2nd entry should be the Do-more Simulator. Run it, then connect to it.
BTW, the MySim comm link IP address should be 127.0.0.1, which is "local host", i.e. the PC itself.