OK, the VU's aren't showing the signal but you can hear it; did you actually try to record?

The VU's only show the default in/outs. Those are the ones at the top of the driver list. If you have the second one down highlited the VU's won't work. That's what the 'Move selected device to top' button does. It makes the chosen device move to the top of the list so it is the default and the VUs work. You can record without the VU's, but if you want them you need to make your device the default device in RB.

As for your solo, RB does not support the 'soloist' track in BiaB to my knowledge. It works more like a DAW than an accompaniment program. You would have to highlite the section you want the solo in and generate it by right-clicking the track. Or save the solo from BiaB to its own wav file and use 'Audio - import wave file' in RB.

Make your sound your own!
.. I do not work here, but the benefits are still awesome