BTW, this is on a Mac but most of the things should be the same for PC.
1. Create ad hoc network. (or leave on your standard wifi router network if you so choose)
2. Make sure iPad is connected to that network in prefs.
3. Start LiveControl.
4. In LiveControl, press GetIP in Configure window.
5. Click on the address that shows up and the IP address will automatically change in the Local IP Address dialog box.
6. Close little Select IP Address window.
7. Select 'Using an iPad' in LiveControl configure window
8. Press Save Configuration.
9. Start OSC app on iPad.
10. Press your network name under the network dialog area.
11. Take note of the Local IP address listed there.
12. The Local IP address number from the iPad must be entered into the Remote IP address dialog box in LiveControl.
13. Press Save Configuration.
14. On the iPad, select LiveControl under the found hosts dialog area.
15. On the iPad, select TouchOSC black button at the top, then the Done button to get you to the LiveControl interface.
16.Back over to the LiveControl on your computer, select Enable Router.
17. Save Config and go to the Router page.
18. Select your preferred driver. Press Start Router.
19. Open Ableton Live.
20. Make sure that LiveControl is selected as a Control Surface, and that your selected MIDI port has the TRACK set to on. Leave Sync and Remote off.
21. On a MIDI track, set your MIDI from to your chosen port and arm your track.
22. FEEL THE MAGIC, BABY!
I've followed these exact steps 6 different times, and it worked perfectly each time. Several times I would shut my machine down and start a new network - just to be thorough.
Connection via OSC and virtual MIDI ports into Live has always been a VERY idiosyncratic pain in the ass, and this is no different here.
There seems to always be an exact order to things that must be followed or else havoc will ensue. 
Also, Ableton Live is LAST thing that should be started up. ST8's Router instructions on his website shows a Live prefs window under step 5 - indicating that Live should have been started up by that point. Every time I tried that method - where Live is started up earlier - things would NOT work properly.
There are probably steps listed above that are unnecessary and redundant; such as all the Save Configs. But hey, it works.
Sometimes your iPad may return an IP address of 127.0.0.1 or the like. This is bogus. Exit out of the OSC app, then re-enter. A proper device IP should show up then.
I would also suggest that when you're all finished with your set / session, go back into the LiveControl app on your computer and stop the router. Deselect Using an iPad and Enable router and then SAVE config. I've found that not doing this leads to wonky behavior when firing up again. Best to start fresh.
Well, again a big thanks to ST8 (and thanks for the offer of IM). I'll continue testing later today and hopefully find success again.
