From the cubase.net site: (I added the bold)
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Features:
48 audio (Wave, MP3) & 64 MIDI channels
Professional mixer & real-time effects
Universal Sound Module & virtual instruments
Mastering and CD-R software
Full MP3 & RealAudio export
Steinberg InWire - Make music with others over the Internet
Bonus CD with 600 MB of samples & songs (all styles & automatic BeatMatching)
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Yup- It can do it. Steinberg would be stupid indeed if they didn't include VSTi support for the Cubase-tease-version of their recording software.
Have fun,
Chris