Sometimes, the first time you run the Simulator, Windows gives you a nag dialog asking you about allowing the Simulator to have access to your network. I think one of the options is for access to your Private Network (it does NOT need access to a public network).

Try just running the Simulator without opening up the disk project (see the Applications group in the Launch Pad on the left, and double click on the Simulator.

If that works, see if you can just connect to it with a NEW project ONLINE project. In the 2nd toolbar, click on the New Online button. Select the MySim link and hit Connect button. Let us know if that worked.

I have been trying to make the simulation run with all sequence combinations of simulator, plc connect and plc download. Sometimes the run works, with ladder and simulator working in unison as in tutorial. Sometimes the simulator only works for X1, X2 and Y0 without the ladder elements getting illuminated. So i realised that the tutorial is for budding professional and not for total newbie like me.

I suggest that the tutorial starts with explaining what sequence of steps are to be taken and why. This will make the initiated like me not to try hit and miss but take educated steps.