I submitted my post to PG Support and all it took was the old Return To Factory Settings to set things right.
A simple solution for my simple mind.

Here's Rob's reply, in case it can help others out there with a similar problem

"It sounds like you are doing everything right but I would reset RealBand to factory settings by deleting the following files out of the RealBand folder.

RB.CFG
RealBand.ini

Then make absolutely sure no other program is open and actively using either the tone port or the Korg.

Then open RealBand and visit Options –> Preferences –> Midi Tab –> Midi Devices –>
Input Driver –> This depends on how the midi keyboard is going into the computer if it connects to the Tone Port which then connects to the computer you choose TonePort
-> If the Korg plugs directly into the Computer by way of USB then you choose Korg/USB for the midi input driver.

Output Drier –> Commonly chosen is Microsoft GS Wavetable + Re-route Midi Playback to Default –> YES –> Default DXI Synth (Coyote WT)

When everything is setup hit the record midi button (record audio is the record button with the waveform in it so we want the normal red record button) hit some keys on the midi keyboard while recording, then hit stop in RealBand and OK to keep take."

Only thing I would add is to say No when it asks if you want to use ASIO drivers...use MME instead, at least it works for me in this instance.

Thanks Rob and PG Music!
Carkins