weird midi problem in cubase on mac

[x3em]

I have a really strange problem with cubase SL 2 on a minimac.

This problem can be reproduced with just a keyboard plugged directly into the mac (FW410). I usually use a MOTU timepiece MTP. But let's keep it simple since I am pretty sure this is a cubase setting that is goofed up.

new project, add midi track, set left and right marker and start recording a loop

all notes get the exact same start location (random somewhere in the midi bar) and they do not release at all so the note events just keeps going a couple of miles to the right (or something like that). playback obviously sounds horrible and do not resemble what was actually recorded at all. playback of previously recordered stuff works just fine.

I tried changing midi cables, midi trhough is off, etc etc. can't think of what bizzare setting I may have changed and forgotten about.

Any pointers , thougts, ideas very much appricated.

- John