The device should be off when you plug it in (as per instructions) and so long as the Nokia cable drivers are installed, there's no problem and PC Suite won't try to initiate.

Things to look at:

1. I think there might be a problem with your directories (in windows). Try placing everything in the top directory of a drive (e.g. c:\) so the strings you need to enter are really short - I believe it needs full file paths.

2. Make sure you're using the most recent versions of the firmware (PR1.3 and similarly dated eMMC image).