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in other words, has the virus become a hardware VSTi ??
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Well, that's the whole idea in TI and that's what the hype is all about.
I think when the Virus is used via USB it doesn't acctally need an audio interface and no DA/AD transformings are not needed. Then you can rout the output from the sequencer to Virus input and set the mixdown go to one of the stereo outputs if the Virus. I'm not sure though can you also use the hardware inputs when you use the input via USB.