First off, my set up is a DJM-t1 with the latest firmware and TSI (downloaded today) and a CDJ-850 on Deck B attempting Instant Doubles. I have my DJM hooked up via USB to my Laptop and RCAed to my CDJ (line, not phono). The issue begins when I play a track on my CDJ. If I hit cue, the track stops but on my laptop the marker does not reset to the cue point, If I play again it WILL play from the cue point and will reset to there visually for split second. In essence, it functions but I have to visual indication of whats going on. Also, moving the tempo fader slows or speeds up the track but does NOT reflect on the Screen therefore does not duplicate on instant doubles. I am attempting to play on absolute mode as I really have to idea the difference between the two. Also, my calibration circle is a blue dotted circle wth a diagonal yellow line in the center if that helps.
Use MIDI instead of Timecode with the 850s if you want more accurate visual representation.
Remember, everything that happens when using timecode relies on an audio signal being sent from the CDJ. If you hit Cue, the CDJ simply stops playing audio. It does not tell the laptop that the track has been reset.
Timecode was really initially designed for vinyl. Advantages on your set up are pretty much nil as you can use MIDI.
Absolute and relative mode differences:
Relative means that wherever the needle is on the record (or CD laser on the CD) reflects to where in the song is being played so if you moved the needle forward the track would also move forward - think needle drop.
Absolute means if you move the needle forward the song would pick up from where you left.