There has been a number of posts now where people are experiencing problems with their Midi controllers that are solved as soon as they switch from DirectMusic to MME. People think this to be a bug in Live 7 because the very same Sets worked without problems on their Live 6 installation (which always uses MME).
I do not ask to get rid of DirectMusic, by no means, it's great to finally have it in another DAW than Cubase. It's even quite a shame that it took so many years to finally be recognized as the better Midi option eventhough it's been around for so many years.
But PLEASE change the default behavior of Live's Midi preferences or put a LARGE popup upon starting Live that has to be confirmed that this has changed and where to find the setting. This setting is hidden so deep in the Preferences that it's even hard to tell people where to find it when you know where to look.
My prefered solution would be that Live activates DirectMusic on only those ports that support it natively and switches to MME for all ports that do not come with native DirectMusic drivers. According to what was written during Beta Live is able to discern emulated from native ports anyway (I reallyreallyreally hope this is true).
Wish you some nice holidays over christmas, by the way!