Looks like you didn't make the fifo or it didn't get created correctly. I had problems here too I think. To make the fifo:
Mount your drives read-write by issuing a "rwm" and a "rw". Then issue a "mkfifo /usr/local/ttsd". If this doesn't work you may have to do a "mkdir /usr/local" first as I did not have a /usr/local directory I think (also do a "ro" to remount read-only!). Do this and then restart ttsd and see what happens.