MIDI Layers - What am I missing? (SOLVED!)

codamedia


I've never taken advantage of layers that much in the past, but decided to give it a try lately. I am not having any problems with Audio. Each take I do creates a new layer and I can slice and dice a part without any problem.
 
My issue is with Midi. Like many, I use EZ Drummer or Superior Drummer to create parts. On the primary layer I drag and drop my parts. When I go to add a few extras (maybe some crash cymbals, the odd fill etc...) I want to do this on a new midi layer. I create the layer, choose to select the layer yet the part drops into the primary layer. When I move the part - it creates a hole in the primary layer.
 
I got this idea from the Sonar Master Class on drum production - where I believe about 5 minutes into the 3rd video they go over this. In that sample (done on 8.5 I believe) the added part lands on the primary layer, but when it is moved it does not create a hole, it simply moves the new part and leaves the part underneath in tact.
 
Under preferences > project I am set for Sound on Sound - but aside from that I cannot seem to find any midi setting for this. I am missing something really simply, but need some direction

The parts are dragging into the primary layer (from EZ or Superior), but when I move them to a new layer - it is leaving a big hole in the part that was there. I just verified this is happening in both 8.5 & X1, regardless of the Recording setting (sound on sound or overwrite).