The config tool should grey out once you kill the two process and tracking should work in elite in extended mode. Do not touch the config app once you've closed the processes and launch Elite.. Let me know what you see...
Still no joy..
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1. Download the runtime and (optional) SDK
Done
http://static.oculusvr.com/sdk-downl...ion_Manual.pdf
Driver (runtime) was installed prior to connecting, and device wired properly (minus the accessory power connector).
3. Make sure you update the firmware.
Done
4. Test using the small room demo and / or Oculus world using direct mode.
Done and working fine. Both camera and rift light are blue.
5. If they work, calibrate your IPD and tracking zone using the config app and small room. I find putting the camera on the back wall and moving the desk forward allows for more wiggle room.
Done
6. If everything is cool, switch to extended mode inside the config app. For the moment keep the monitor set to primary.
Done
7. Not sure about AMD, but for NVIDIA cards you will need to change the orientation of the screen, so that it appears the correct way round. This can be done in the NVIDIA control panel. Whilst you are in there, create a 3d settings profile for ED and set antialiasing and triple buffering to on.
(AMD) Done. Also disabled crossfire and created profile.
8. Lastly in the NVIDIA control panel, set the Rift refresh rate to 75 hz.
(AMD) - extended screen (Rift) defaults to 75 hz.
9. Ok now open up the oculus config file again and hit Ctrl , Alt and Del. in task manager, close wscrip.exe and ovservice.exe in processes.
Oculus configuration screen turns grey. Camera light turn off, rift light remain blue and extended screen is visible in the rift.
10. If its NOT Elite Dangerous you are wanting to play at this point, you will need to set the rift now as the primary monitor. If its Elite Dangerous you want, just open the game.
Done
11. In options / graphics make sure the refresh rate is set to 75 hz and v sync is on. Switch to Oculus mode and set display to secondary monitor.
Done - Oculus W speakers
12. Once in game, lean back in your chair and hit F12 to reset the rift and avoid clipping. If you are still not happy, move your desk away from the wall and reset again. (Assuming you have the camera mounted in the wall behind the desk.)
Camera is not tracking, looking at a fixed background.
13. Done
I wish... 
*If you are getting a message saying oculus service not available, go to your oculus folder and open the inside the services folderovrservice_x86 or x64. Then open the config.exe inside the tools folder.
(Aside - and of interest) There has to be something wrong somewhere, as I cannot get the rift to be recognized following your asterix. The service starts, and is visible in task manager, yet starting the config utility remains grey even thought the rift is still active (blue light). (EDIT) - However, if I then disconnect the rift USB connector and plug it into the next port, the device resets causes the rift to be detectable again by the configuration utility (rinse and repeat)