I’ve been using the HSO in HSSE quite a bit of late and have found that the first thing you need to do is turn up the Modulation Wheel to get a decent level. I also know that it won’t remember this and that I need to put a Modulation Event in the MIDI Track.
Okay, I thought, I’ll put one at the start of the track and let Cubase chase it. The trouble is, it doesn’t. But CC’s are chased in Preferences, beyond Part Boundaries. How come it’s not picking it up?
Perhaps this is relevant: If I playback over the event at the track start containing the mod event, then leave it running to the start of the tune, I get the right volume. If I skip to the start of the loop (later on), though, I lose the volume as if I’d never been over the mod event.
I’m also battling with this issue.
I thought I had it for a moment, using an Automation Track but it’s not working now.
It works if I play the Arranger Track but only after skipping to a section beyond some white space. And then only until I stop. On restart I have to wait until the next skip.
Scrolling the Modulation value in the track controls section of the Automation track forces Cubase to read the value. It doesn’t actually change the value, which is on Read only, but it does get it going.
It also kicks in when Cubase skips backs to the start of the loop.
If this was a bug surely there’d be a rumble out there, so what have I not done?
I’ve had similar problems and I suspect a bug but I’ve never tracked it down. For me sometimes the automation appears to stop working after a while and a restart sorts it. That might be worth testing.
The other thing I’ve struggled with is that Cb also transmits ‘reset’ CC values behind the scenes. These I tracked down once using Midiox on external midi because they kept messing my HW synth volumes (midi expression perhaps?). In one case I avoided this by changing the controller val in the softsynth, in another I wrote a filter in Midiox and used midiyoke (annoying solution).
But right now I’m on a bus somewhere in Sweden so I can’t look at Cb 
Mike.
Right now I’m looking for accomodation following a fire so I can’t either!