If it actually turns off when you touch the jog wheel then you have two possibilities.
1) The USB port you are using is crap
2) You did not correctly reassemble the VCI...

However you said it works in Traktor, you need to confirm if it really works in traktor or not.

From the sounds of things you did not assemble it correctly - did you replace the piece of cardboard under the circuit board which the update kits attaches to?