Thanks again for all your great suggestions. I was able to fix it with help from PG support, so I figured I'd post here in case anyone else can use it.

They told me to download this free midi driver, Loopbe1 :http://nerds.de/en/download.html, (I believe they said this was needed since I'm on 64-bit win7)

Then to download Asio4all driver http://asio4all.com/

Run and install both, restart computer, in Realband go Options, Preferences, midi tab, midi devices, select Loopbe1, make sure "reroute midi back" box is checked, and Coyote WT selected from the drop-down.

Then go Options Preferences, audio tab, and select ASIO in the audio driver type drop-down (not MME)

Now it seems to work. In case this helps some other RB newb, thanks again folks, any comments on any of this welcome. I imagine there may have been other fixes...