Dan,
I notice that you have a MIDI Supertrack style loaded. Is this on the Piano track and is it sforazando or maybe another VST? That would explain why you have two channels 1.
It's okay to have two tracks directing MIDI instructions to the same channel provided they are going to different VSTs. The setting is literally saying, "BIAB is sending data on channel 1 to whatever is in the plugin slot". I'm guessing that the other tracks are showing the default soft synth. (Problems will arise if all the tracks are sending MIDI to the same synth.)
The above is my understanding. I don't play around with MIDI plugins too often in BIAB so I'm not an authority by any stretch of the imagination. Please feel free to correct me if my understanding wrong.
Regards,
Noel