Cubase-Sequel Question

Cubase 4.5.2, Sequel 2, M Audio Audiophile 192, XP SP2

Want to run Sequel with Cubase at the same time.
Sequel has a “live pad mode”. Right now I play the pads and record the stereo digital output on a Masterlink. Play the Masterlink back into Cubase and then edit the 2track and add vocals. Can I just play Sequel through digital out and record that in Cubase (digital in) on the fly? I guess if Sequel is running and I launch Cubase the VST settings on Cubase are getting messed up.