I too tried flashing memory on JTV to 2.0, when I opened workbench HD all my presets were overwritten with ?????? or --------- marks 
I had the gotten the same error (Code 8000900C    midi timed out/midi failed to open/etc...every time I tried to flash JTV from dongle....SO: 
I reinstalled the drivers  and usb the firmware.... no success. 
I tried rolling back flash memory - no such luck... 
new usb and network cables...still no luck... 
I was convinced my dongle was bad. 
As a last resort went to church and got my HD500 and connected the usb to my laptop, variax to hd500 vdi input- started monkey and "choose device" screen I chose tyler variax-clicked ok, clicked on flash memory then clicked reinstall latest. select NO when it asks you if you want to save presets (for a new install of 2.0)  YES!!!!!!!!! SUCCESS!!!! after many long hours I then opened workbench HD thru my HD500 and it worked. 
P.S. I am now trying to glue back the hair I ripped out so I don't look that bad during Christmas photos just more G.A.S. pains I guess- hopefully my lengthy trial can help someone else!