Thanks for your replies rharv, justanoldmose:

rharv - Your question as to whether there was audio coming from the track was, of course, the real point. No, after trying different settings, I was saving the takes, but I couldn't get sound coming from track 2.

But your comments prompted me into having a closer look at the mono/stereo left/right situation. I looked closer at the Yamaha interface and saw that the channel 1 is designated as Left and channel 2 is designated as Right and I have been playing through channel 2 all along, But the PTP Audio Settings > Audio tab - 2 > Input Channel for MONO tracks is set for LEFT. I was thinking there's no difference between the channel 1 or 2 on the Yamaha, all roads lead to Rome.

I switched to using channel 1 on the Yamaha and now I get sound (hearing both tracks 1 & 2) when I record > save take > playback.

Thanks everyone for your help, resolved. I have further issues (when recording, I can't hear the guitar, only when I save take and do the playback), but I will read the forums first to try to solve it before asking for more help.

Thanks everyone!