MIDI in Reaper?

a) Have you any other hosts that you can try? To see whether the problem is specific to Reaper (/configuration). b) Also, can you try using another VSTi in Reaper?

That template link 

for troubleshooting try recording with the virtual keyboard... "ctrl+B" dont forget to choose it as yr midi input on the track.

Data, Tried tweaking the buffer and vsti settings you suggested...(tried different combinations....) but still no luck. The problems of missing notes and long durations are still present. Oh well.......