Thanks Ryan,
I watched the videos and for the sake of being diligent repeated everything on the video to the letter on my system and I still cannot get audio into Studio One. Furthermore, I went ahead and downloaded Logic Pro (demo) and I was able to route audio in and out Logic from and back to the mixer without a hitch. That's 3 for 2, three DAWs (Reaper, Logic Pro and Studio One) and 2 working seamlessly with my StudioLive 32SC (Reaper and Logic Pro)
I am dumbfounded that Studio One which I assume was built to work with Presonus gear just won't work. Ironically I like the integration of Studio One better than say HUI for Logic. The integration for transport controls from StudioLive to Studio One is great, way better than HUI Protocol, but without being able to get audio signal into Studio One for recording makes me feel I wasted the money on Studio One. The only reason I was interested in Studio One in the first place was because of the supposed integration with my StudioLive 32SC mixer. I wish I would have taken that money and gotten Logic instead...