Here's what I do. And I'm not suggesting that this is the only or right way. I am learning too. I either use my keyboard or drum machine to record midi data to the pc sequencing software. So, let's say I'm using the keyboard. I set the tempo on the 1600, which is synched with the pc. I hit play (no need to be in record mode yet), which starts the pc sequencer. Then, I strike the appropirate keys on the keyboard, which in turn RECORDS that midi DATA (not audio) on the PC....So...I can either record a little short pattern to then 'loop' or I can play the entire song through...The complexity of the pattern decides this for me. So lets say I hit a few bad notes (drum sounds). No problem. I stop the recorder, use my mouse to move the notes around, change the lengths, volume etc....then play it back. I do this until I get it the way I want it. The audio OUTPUT of either the drum machine or sound module is routed (in my case) to tracks 7 and 8 on the 1600. Put the 1600 in INPUT mode and these sounds will be heard through those tracks as you record/play them into the sequencer. I do the same for bass etc. Now, if you have eq'ing capability from the pc, you could mix all these sounds appropriately there, and NEVER move the audio data to the 1600, saving tracks in the process. However, since I rarely have a need for 16 tracks, and I have limited pc eq/effects capability, I usually RECORD the output of the sound module onto the appropriate track, once I have gotten it to sound the way I ultimately want it. For drums, thats 15/16, bass 11/12 etc. You could put these anywhere...but that is where I put them. Obviously, I define these stereo tracks as normal audio, not bass or drum tracks. When you are in STEREO track INPUT mode, 7/8 are recorded to 15/16 (assuming 15/16 is the selected track for recording). I usually record ALL my MIDI stuff there first, and then MOVE them to the track(s) I really want them on. I put them on different vtracks of 15/16 so as not to overwrite the drums on 15/16 if I've already recorded them there. Doing this keeps me from having to MOVE the audio input jacks (that come FROM the sound module) to different input tracks on the 1600...I just find it easier that way. Now that the audio (from the MIDI data) is recorded onto the 1600, I apply eq and effects to each instrument etc. So I can eq the bass way up on the bass tracks, add bass or trebel or mid range to the drum track, reverb, pan etc. I record guitars and vocal directly into the 1600 (through mic's), mix it the way I want, master it, burn the cd and it's all good. I find this to work well for me, and using the pc, it is easy then to create additional tracks for different instruments, copy other instrument patterns, alter them some to get the sounds you're looking for.
Hope this helps.
steve