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1. By "insert FX", I would like to assume you mean compression and EQ, etc. If so, you're going to want to put those on the VST channel and not the MIDI channel. MIDI inserts include arppegiators, chord memorizers, etc.
2. On your computer/soundcard, make sure you have the MIDI Out going to the MIDI In of the Waldorf. Even though you're playing it via Radium 49, you're going to want Cubase to play back the synth directly instead of through the keyboard. In your "Device Setup" menu, setup your MIDI outputs to be named "Waldorf" or something (just an example). Then, in your MIDI track, under "output" you should see "Waldorf" as an option. You should be all good to go.
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