Actually you can Load Halion SE into the VST instrument Rack where it will behave as multiple (max 16) synths - each with it’s own midi channel and mixer track, as opposed to loading it onto an instrument track which results in the situation you are currently having.
Just to be clear “Midi Loops” (an exclusive Cubase feature) have sounds, “Midi files” don’t.
To be less 
clear- Midi Loops include the info needed to create an instrument track, and configure it with a VSTi.
In that sense they don’t have any actual sound. I imagine that is what Laurence Payne was saying… Though since I am not in his head so it’s just conjecture. 
edit: missing words
While we’re on the subject of channels, files, loops and what not, what is the MIDI channel limitation of Cubase. There are only 16 MIDI channels. If I use up all 16 and want to record a 17th instrument, where does it go? If I use an already used MIDI channel isn’t that going to cause a conflict?
With my hard wired recording studio I just bounce tracks. Of course with only 8 to work with after a while things tend to get a little muddy so I can’t go crazy. But with a little programming of a multi channel sequencer I can get a pretty good mix of instruments.
How does all this work in Cubase? So far, in my few attempts, I haven’t gone past 5 or 6 instruments. What happens when I go past 16? Can I go past 16? And if so, how?
There is no limit to the number of channels.
There are 16 channels per midi port. That means you just create a new instance the VST instrument you ran out of channels on.
Some VST 3.5 instruments can do more than 16 channels per instance, but I don’t use them, so I got nothin to say about that.
Thanks Steve. I’m assuming that there are no limits to the number of MIDI ports either, correct?
well, no. 
Try doing this for a mini tutorial:
raino…This is a new one for me… I was reading your suggestion to Wagtunes and figured I’d give it a try…Worked very well…I should change my name to “audio guy 9 years in the making”. I can see myself using this much more frequently, thanks. This thread has been a very concentrated learning session for me with regards to MIDI . Beats the first 50 or so pages of the manual
OK Next lesson ?
So what you’re saying is that any USB keyboard controller will, at the very least, play the notes and transmit mod wheel and sustain pedal data that will be recognized and recorded by Cubase 7? If that’s true, that’s all I really care about.
Yes, most new standard midi keyboards such as the M Audio are indeed class compliant, just plug and play, you may wish to check that the one you intend to purchase is indeed, but more than likely will be.
Have fun! 
If you use Instrument Tracks one sound patch is assigned to the track, but you can create as many Instrument Tracks with different sounds as you want (up to where you overload your computer), with a significantly powerful computer you could create hundreds of different tracks and never need to even think about or deal with midi channels.
If you use MIDI Tracks you send their midi output to an instrument in the VST rack. Each instrument there is limited to 16 midi channels and you’ll need to keep track of what’s routed where. Then if you want to have a 17th voice playing you’ll need to add a new instrument to the rack. Also some VSTi’s are not multi-timbral, so you need to load a new instance of those in both types of tracks.
I tend to almost exclusively use Instrument Tracks since they are easier to setup and use - no midi out to think about, no need to recall if the organ patch is on channel 5, 6 or “what was it???”. Just create the track and you get an audio channel playing its midi part in the mixer. If you want to A/B the part playing on different instruments, just duplicate the track, assign it a different instrument and mute between them. To do that using a midi track you’d need to change the channel of the duplicated part and load the new instrument into an unused slot (if you have one left) in your VSTi. Overall Instrument Tracks are easier to use if you aren’t doing fancy stuff.
However there are downsides to Instrument Tracks. They are wasteful of computing resources since you are loading a new VSTi for each track. But if that isn’t causing problems it isn’t an issue. I can easily use 20 Instrument Tracks without problems and if I did I’d just freeze a few tracks - which renders them as audio files (kind of like a loss-less single instrument bounce). But for folks who use very large templates, I’m pretty sure Steve is one, that can have hundreds or even a thousand or more tracks - performance can be a real issue - so MIDI Tracks really help with this. Also Instrument Tracks are designed to output their audio on one stereo or potentially a surround channel. So for example if you have a drum VSTi and you want to EQ the kick, snares, toms, and overheads differently you’d want to use a MIDI Track since you can create multiple audio outputs (assuming the actual VSTi is designed to allow this).
For ease of use and setup, use Instrument Tracks. But if you find you need to conserve computing power or require additional audio outs then use a MIDI Track. Also if you start off on an Instrument Track you can easily change it by creating a new MIDI track and dragging your midi parts onto it.
Hi and welcome to the Cubase forums!
Raino is correct, but I’m gonna be a little pedantic here. What he calls MIDI Tracks are actually called VST Instrument Tracks in Cubase. As others have said, and I’m only repeating this because it is very important to understand the difference, VST Instrument Tracks differ from Instrument Tracks in the following ways:
1- VST Instrument Tracks are akin to an analog synth rack, where you will have up to 16 MIDI channels per virtual synth loaded. Some virtual synths (aka soft-synths or VSTi) also support several MIDI ports, each with 16 MIDI channels, so you’re able to load more than 16 instruments per instance. But again, this depends on the soft-synth’s capabilities. On the other hand, Instrument Tracks only recognize MIDI channel 1, which means you can only load one patch per instance. However, there is a way to circumvent this limitation via VST Expression Maps and also Track Lanes, but that’s a bit outside of the basics.
2- VST Instrument Tracks have separate Audio and MIDI tracks, which Cubase creates automatically for you if the preference to do so is enabled, while Instrument Tracks combines both Audio and MIDI tracks in one track format. Which one you use depends on the application. For example, if you need separate MIDI and/or Audio tracks for each patch loaded into a single VSTi, then VST Instrument Tracks is what you want. In order for the multi-output Audio tracks to show up though, you will need to tick the VERY small icon next to the VSTi’s name in the synth rack (F11). It is extremely easy to miss, but that’s how you enable all or as many audio outputs as the VSTi supports. IMO, VST Instrument Tracks are more convenient when using Drum soft-synths or when you need to layer two or more instrument patches, using the same soft-synth, both being triggered from the same MIDI part. In contrast, Instrument Tracks are more convenient whenever a single instrument, be it a Bass synth, a lead patch or similar, is desired. It makes for a faster and cleaner setup, which is why I tend to use them more often than the former.
3- Cubase has a limit of 64 VSTi’s that can be loaded into the Synth Rack. On the other hand, there are no limits, only based on your CPU horsepower, as to how many Instrument Tracks you can load into a project.
There are more differences between them, but I’m not trying to overwhelm you either. Hopefully, this will give you an idea of when to use one or the other though.
By the way, another way of switching from one VSTi to another is achieved via the MIDI output. Notice that the MIDI Track’s output of a soft-synth will display the VSTi being used. If you click on it, you will reveal a list of all the available soft-synths on your system. Simply select the one you want to replace it with and Cubase will automatically open the new VSTi’s user interface. After that, all you need is to load the patch you want into the new soft-synth. Et voila!
Cubase definitely has a steep learning curve, but that’s only because of how powerful it is. Stick with it and you will not regret it.
Hope this helps!
From one pedant to another-
To avoid confusion-
Huh? They’re just called Midi tracks. See page 41.
Well that’s likely confusing to someone who is learning Cubase. Saying it like this would include the salient but missing information:
Notice that the output of a midi track routed to a soft-synth will display the VSTi being used. If you click on it, you will reveal a list of all the soft-synths you have loaded in the VST Instrument window.
I had nearly all of the issues that affected wagtunes. I was lucky that I have friends who use Cubase who were prepared for me to ring them up when I had a problem. They were very patient with me.
I have since passed on the favour to two other friends have had their struggles with getting to grips with a different way of thinking. I do feel that the main problem with technology is the time it takes for anybody to get their head around a new way of thinking. My biggest problem early on was all the menus and the hidden stuff. A box unticked once frustrated me for three days and only a friend’s expertise saved me from total madness. Is there anyone in you area that offers tuition? As an ex teacher I know the value of structured learning.
There is one person in my area who is also a musician and my PC tech who probably knows this stuff inside and out. Unfortunately, his availability is limited right now because of work related problems. In fact, he doesn’t even have the time to upgrade my PC right now, which I definitely need done if I’m going to run all the new VSTs (EWQL SO, HS, Choirs) that I got for the project I’ll be working on. So I’m pretty much on my own as far as figuring this stuff out. This forum has been an amazing help and I thank you all for your assistance. In my almost 20 years on the Internet, I can honestly say this has been the most receptive and helpful forum I’ve ever attended. You should all be very proud of this community.
Anyway, I’m back to maneuvering through this maze. If I should run into any other problems that I can’t solve I’ll be back with more questions. Hopefully, they will be few.
Actually, they are called VST Instrument Tracks, page 252 of the manual. I should’ve made sure I was correct in the first place, my bad. Will correct this in my previous post.
I thought it was very clear already, but sure!
Thanks for the corrections