It seems I didn't make it clear I'm not looking for Win7 help right now. Sorry about that. I just posted in response to the OP question since it might have been related to my own Win7/BIAB experience.

Like I said, right now I have a stable system on WinXP and my priorities are elsewhere for the moment. But I will apply the patches, thanks Mac & jazzmammal

When I do go back to Win7, I will be far more specific should I need help.

@jazzmammal to answer your question I use BIAB and Real Band to generate audio-only files, i.e. NO MIDI, just Real Tracks. Then I import those tracks into Reason+Record projects.

Thanks