Hello David,
You are correct that the signal is railing specifically because the TEDS return is tied to sig-. This configuration is not compatible with our SCC strain gage modules, because the Excitation- (Vex-) terminal is internal connected to ground, and the TEDS ChnRtn terminals are also internally connect to ground. When your sensor ties the TEDS return to Sig-, it is essentially shorting both AI- and Vex- to ground. This is a problem because your sensor is bridge-based, so both legs of the bridge are intended to be at roughly the same potential of Vex/2 (or 5V) when resting, so when you short one of the legs to ground, then the difference between the two legs suddenly becomes very large (5V), and since there is a gain of 100 on this module, that signal will obviously rail. The way to fix this problem is to remove the path to ground from Sig- by disconnecting it from the TEDS return line. I would recommend contacting Transducer Techniques about this issue so that they can recommend a solution for you (i.e. use wire cutters to disconnect Sig- and TEDS return).
Logan Kunitz