Hi Killer,
I'm not sure if this is still needed but in older versions of BIAB, it was necessary to select "Microsoft GS Wavetable Synth" in the output driver box even when using a VST plugin synth. This may well have changed on the present version (I haven't yet tested it).
Also, you should activate "Route midi through to MIDI driver" -- just above the "Coyote WT" synth.
Lastly, I recommend that you click on Audio settings and change the audio driver to MME. This is a stable BIAB driver and is a good starting place when trying to get the system up and running.
Where MME is limited is that it's latency is large if you choose to play a MIDI input keyboard or use BIAB to record vocals. For the moment, though, it's probably the best choice.
Regards,
Noel