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Default Correct drop out problem on Cubase VST using ProteusX synth

I'm trying to sequence using ProteusX (with E-MU 0404 card), to get rid
of latency I droped the ASIO latency down to around 10 to, which
removed the latency problem, but an ugly side effect of having the
latency so low is that Cubase VST has drop out problems when recording.