Craaazy, so now I seem to have figured out the midi issue after clicking mad buttons. And wouldn't you know it now the audio isn't coming through! Audio on my laptop is playing back through my audiobox usb, but when I hit record nothing goes ito cubase. And in fact when I click stop, the whole "recording" dissapears!
If its not one thing its another!
Anyone got any ideas? Wanna upload a screenshot of ur audio config settings? I'm puzzled

Sory to be such a pain in the ass. I'm not totally sure how but I fixed it. And took screen shots for my own reference next time it acts all crazy
Everything is good now! Except for how it glitches right in the begining, but I've just been letting the sequence run an xtra 4 bars so I can cut the first four (or two or 8 or whatever the beat is) thanks y'all!

Gotta do what you gotta do. Not really that big a deal. In cubase you can set the in and out points before you export mix down so you don't really even need to chop out the beginning and slide everything back ages bars. And if you wanted to put something in the beginning you already have the space.

glad to hear you fixed it. here's how i used to track out to daw without midi sync (i use garageband):

1) set the daw bpm to the same as the 404's pattern bpm.
2) start recording into the daw on one track with each pad on solo for however long the pattern is.
3) after all the sounds are recorded onto the one track separately go into grid mode and chop the regions on the ones.
4) drag the regions to separate tracks in the daw. everything should be lined up because the daw bpm matches the 404's bpm, and because you chopped and moved the regions around while in grid mode.

sort of a ghetto way to do it without midi...an old trick, maybe you knew it already

i have this happen occasionally with logic or sometimes midi synced to korg emx... best thing i figured out is to make sure the count in is off in your DAW cuz that will fuck it up and also i always hit the back/return to zero button in the daw a bunch of times before i hit record. u def want send midi clock and stop/start but im pretty sure midi timecode is for movie scores. also even when the sp is midi clock slave to something in my experiance it still has its own random bpm number when the seq isnt running... so i always set the sp clock to my daw as well as midi synced... hope u get it figured out! i had a real hard time w this in logic at first. another thing i thought of i had to do was delay the midi signal from the daw by a few milliseconds. hope any of that helps!!