Roland vs700 questions

hi
i have vs700 and i have 3 questions 
1) when i try to record vst tracks, even when latency is set to fast mode
there's a big delay, and i can't record anything properly becuase of it - recorded notes are recorded with very big lag.
its very strange.
what is the reason of it? how can i fix it?
 
2)in cubase i managed to open fantom and it works well (without visual interface)
but when i do mixdown of all tracks into one file, fantom doesnt go into mixdown and that final mp3 track
sounds without fantom. What to do?
 
3) i have only vs700r rack i/o (without vs700c controller board)
and manual says if i use vs700r separately (without vs700c) i am to open cover
for arx expansion boards and switch to another combination of 4 switches that are 
under that cover. but the strange thing is manual says to switch these 4 switches into new combination and 
after that i must turn vs700r off and then turn it on again.
its sounds strange to me - i mean according to manual i am supposed to switch those 4 switches while the vs700r is turned on?
am i right? if its so, i think its dangerous to to remove cover for expansion slots and swithch these 4 switches when vs700r is working - those 4 switches are placed near microchips , electronics etc.
please explain how i am to do this procedure correctly.
and what is this process made for? what does it change?
is it really necessary to switch it?
btw so far i used vs700r without switching those 4 switches to 
that new combination.