I am having exactly the same issue.
- I restarted my computer; Room Setup still crashed.
- I completely uninstalled and reinstalled steam, Vive, etc; Room Setup still crashed.
I thought it might have been due to a faulty base station (I had a base station with error code 10009), but I am still having the same issue with a brand new one.
It's the room setup program that's messing up, not my hardware as far as I can tell.
I was able to get my perspective to go above ground by setting my headset and controllers on the ground while in SteamVR Home and hitting the "quick calibration" button in the SteamVR settings, but that doesn't change the fact that I can't set up my room to actually play anything.