Hi,

I need some help configuring an external effect...somehow I can not get the job done

Here's my setup:
MacBook Pro OSX Lion
RME Babyface
Cubase 6.5 64bit

Hardware connections:
RME output 1/2 --> Genelec Monitor speakers
RME output 3/4 (phones) --> hardware effect (lunchbox)
RME input 1/2 <--- hardware effect

Cubase settings:
Inputs : not connected
Outputs : stereo out = RME output 1/2
External effects : send = RME 3/4 (phones) / return = RME Mic/line 1/2

RME Totalmix settings:
Hardware inputs:
AN 1/2 : volume 0db / gain 9.0 / stereo

Software playback:
AN 1/2 : volume 0db / stereo
PH 3/4 : volume 0db / stereo

Hardware outputs:
AN 1/2 : volume changes with volume knob / stereo

Control room:
Main : volume 0db

All other faders are down.

Here's my problem:
When I add the external effects plugin in Cubase, I hear both processed signal and unprocessed signal together with a bit of delay in between?

When I mute software playback AN 1/2 in the RME Totalmix software, the problem is solved but now I can only hear the track containing the external effects plugin. All other tracks are muted.
When I unmute the AN 1/2 in the RME Totalmix software and mute the hardware input AN 1/2 instead of the software playback AN 1/2, I do hear the processed sound together with all other tracks in the project but with a LOT of delay. The delay slider won't help here.

Am I using the right settings?
Thank you.