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Do you have the "R" (read automation) enabled on the MIDI track containing the automation parameters? It turns green when it's enabled. When read automation is enabled, the automation parameters are read from the project and sent to the MIDI track's destination, either a MIDI out or a VST synth.
The "W" is for write automation, which means Cubase will receive automation parameters from the MIDI input and write it to the project, for playback on the same channel when read automation is enabled.

The red and green buttons are the read and write automation buttons, they look like that when they are enabled. if they are gray, they are disabled.
Notice the button with the sort of block looking things in it, the top one is yellow; that is the mute automation, you want that button gray, like the one on the pan parameter - when it is yellow, that automation parameter is muted; not played back.
I suppose you might have another problem, but thats what comes to mind 
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