Yo Philadelphia PHIL:
I think you can run a signal into an effects box via the "in" and then run it out via the "OUT."
You can record effects at the same time you cut the track, vocal, guitar, keys, etc. Or, you can use the effect to hear it while recording; however, it doesn't really get recorded.
Or, you can do what I do: I use the effects while recording but they don't go on the recorded track; I wait until mixdown and then add effects.
The MD8 has two loops so I use two different effects boxes to get some "startling" effects.
Keep experimenting. You can check out direct recording effects/ in the MD8 manual. It's fairly easy to understand.
Green Hornet
PS Just plugged in a new set of Yorkville YMS-1 monitors. They make the Alesis 1 monitors I UNPLUGGED, SOUND LIKE Dixie cups via string. Great boxes for the money.
GH