Question

Have tried in Cubase,no problems  in SO3 ,there is no channel output setting for midi out,as well no velocity setting for input,wanting a simple midi in and out with no virtual instrument

Answer 1

I believe that you need the inspector open to see the send/receive information as well as velocity. Select the appropriate channel in arrange, and hit the "i" button towards the top to open inspector for the track.

 

This is assuming that everything has been installed correctly.