Communication between instances
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Yes of course, And the method you are using is correct. The problem is in your control module. There is a fairly extensive explanation of control loops in the programming guide ( but not unfortunately in the on line help ). You need to refer to this and work through the procedure to identify your loop.
You have a loop because you are copying or passing an input variable straight through to an output variable and then looping that value back through to the input again with external connections. To avoid this you need to break the program flow by splittng your control module into 2 or more code blocks. The first code block handles input processing and the last code block handles output processing.
In some cases it might be necessary to declare a variable as nosort. This works but can sometimes be a bad idea because the execution order of the code can become unpredictable and could delay program execution of some control modules by one scan cycle. Try to identify the code loop and adjust the code blocks inside your control module before using nosort.