Hi Sherry,
Thanks for reply - but still doesn't seem to work.
When I click 4 (as in your pic) the rectangles of the piano roll just stay where they are. In fact I tried clicking all the buttons on the piano roll view and non of them move either the notes or the rectangle.
The whole thing seems locked. I also clicked the unlock button but still nothing.
I notice the lock/unlock icon that neither of them stay on. I mean they are highlighted when the mouse cursor moves over them but clicking either does *not* cause either of them to stay "illuminated".

This is really odd because I use exactly these features when I enter music with the mouse and it works fine. The only difference in the sample I attached was that I recorded the music in real time from a keyboard.
Just can't see what I might have missed here.
Perhaps you have some other thoughts about it? Does performance snap to notated on your system with the sample .not perhaps?
regards,
-John