[iain_m]

Yes it does (as I say in my post above - "If I then record a MIDI region and repeat step 6, I find that the region is muted, while FM8 continues to respond to notes played on the Oxygen (as spenner describes).") But don't you find that kind of back-to-front? Maybe I'm only noticing this because I'm coming to it with fresh eyes. I just would have thought that the MIDI mute button would mute the input device next to it.

FWIW, the reference guide is ambiguous: "Muting MIDI results in no MIDI data being passed to the MIDI output."