Hi there,
Glad you got the camera working in the end. I appreciate how frustrating it can be to spend hours and days on something that turns out to be a simple fix, but unfortunately to a certain extent, that is part of the learning process of electronics, robotics and programming in general. The days I lost mucking up C/C++ #include statements springs to mind.
At Dawn Robotics, we are trying to lower the barriers of entry to robotics, but there's obviously a lot of things that still need work. The Pi Camera Robot in particular, is not really yet a full kit with a manual in the sense of our Rover 5 robot. At the moment, it's more of a blog post that's got a bit out of control. We're working on some refinements and improvements however (clearer instructions and more photos being one of them) that should hopefully improve things in the future. For now, I've added to the part that talks about attaching the camera cable, as per your suggestions.
With regards to the camera going dark, this is an intermittent bug that I've seen which is usually solved by restarting the robot. This is either a problem with raspistill, or more likely a problem with the way we're using it in camera_streaming.py. Either way, this is a software issue which is hopefully a bit more up your street. I've created an issue on the Bitbucket repository to keep it visible. Also, the problem may be alleviated by trying the robot in an area with different lighting? This post on the Pi forums may also be relevant.
Regards
Alan