If anyone can correct or embellish my understanding of what I am seeing, please do so.
I am not sure if anyone ever responded to this so I will go ahead. Just to be safe I would verify the 4 pin cable is good and change the micro usb cable but it sure looks like you are seeing a continuous restart loop of the AUC dongle. You will almost assuredly need to replace it. As far as power requirements go the Rpi should have at least a 1.5 amp power supply (I would recommend a minimum of 2amp personally). A 1 amp power supply will not support the AUC dongle and the RPi at the same time. The dongle will sit idle with just a single green LED on and the Pi itself will crash and only have its red power LEDs on. My impression is it is corrupt firmware on the dongle causing the boot loop. Avalon does has firmware for the AUC on its canaan creative site but I do not know how you would actually reflash the dongle itself or if that will even fix the problem.
I have found this wall wart can do 2 rasp pi's
http://www.amazon.com/gp/product/B014ZMOZY0?
I have found this usb 2 cable to be very high quality
http://www.amazon.com/gp/product/B015MJLEUS?
If you do the usb cables above with the wall wart above and you have a fail then the little dongle converter is very likely no good.
but I would give them a try.
use two of the three usb cables
one for power to the rasp pi
one for power to the dongle
save the third
one for back up
I don't do anything special on my RPI power. I had a decent amount of phone charger's and usb cords. So I just used them and then there was zero cost. I'm all for re-using parts.
I have a good amount sorted at this point just waiting for projects.