What i get from this is that you are not getting any signal in RB to the track level.

CORRECT

We know that Rb is recording since the track changes color.

I DID NOT KNOW IF THAT MATTERED OR NOT.

Okay Eddie, what version of RB? 2011? and what build?

2011 (4)

Is the volume fader all the way up in the Delta driver applet?

I ASSUME THAT WHERE THE TRACK NUMBERS ARE ON THE LEFT? YES, IT IS

Is there a volume fader on the interface that might be down now?

NO. I HEAR MY KEYBOARD PLAYING THROUGH THE INTERFACE

Is the volume output in the Delta (M-Audio) applet muted?

I DON'T KNOW WHAT YOU MEAN BY THAT. "DELTA APPLET" IS THROWING ME.

Is the green check mark showing in the RB track? (or a red X)

GREEN CHECK