No you don't need to unplug any other input device for the TS to work....
do you have the sound notification from windows when you plug it??
when you open the Touchkit/configure utility do you see the usb device in the active panel windows???
2.Check that the TS is geting power.
3.open the housing and check that the usb cable is tight in to the TS controller conector.
Ckect one by one and narrow the problem down