Update: The solution to this is referenced below. 
I can’t seem to put this together and could use some help.
In a nutshell, I’d like to record the output from Apache Sx, as Midi Data, to the MIDI track the insert is placed on – in this case the track is playing back chords from a Chord Track.
The objective is to have a guitar-like picking pattern background with a guitar-like patch.
Here’s how it’s going and it sounds great –
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Create Chord Track, simple chords, one or two chords per measure in 4/4.
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Create Instrument Track with its Midi Track, Midi Channel 1, set to play the Guitar-like patch. (I’m using a nice patch from Mystic, but the instrument choice is incidental).
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Assign Apache SX to a Midi Insert of the MIDI Track and call up one of the Presets.
All this sounds great and I’m loving how the picking is working with the patch.
OK, so, this is where I’m not getting it right.
Firstly, sure, I can record the audio out from this just fine and that sounds great, but I’m not ready to move these parts to audio just yet. Rather, I’d like to record the midi output from Arpache XS to a empty MIDI Track, as MIDI Data. That way I might further refine the patterns and play them with different patches as the parts develop.
I see the “record to track” button on the Arpache SX insert, but must not understand how it works. When I enable it, the arpeggios from Apache stop playing – I’m using one of the Guitar Picking Presets “Electric Pick” I think it’s called. But, with “record to track” enabled, I’m getting only the typical held chords which Chord Track produces when monitoring a track or tracks and no MIDI Data of any kind is recorded to the Midi Track. 
I hope I’ve explained this succinctly and you’ll help me see how this works – or if something isn’t working correctly in my Cubase. Anyway, thanks for reading and for any advice or operations manual references 
on this. 
P.S. Generally speaking, my system is working very well and I’m enjoying getting more into Cubase Pro 8 everyday.
