I'm having the same issue here, but it's still not connecting here.
The SL prefs window will say connected after pressing connect, the SL gui shows the looper controls and says not connected, and then the lost connection dialog box shows up and the gui looper controls disappear
or SL 1.6.16
MacPro 2.8 ghz Octocore
I checked the console log and I'm seeing nothing that coincide with opening SL as an AU.
I hope you have some ideas,