Loop recording with playback?

First, go to Preferences ("P" shortcut on your keyboard, or EDIT>PREFERENCES) then go to Project>Record and change the Recording Mode to Sound on Sound (default is Comping).
 
this will allow you to hear the previously recorded track when recording on the same track again.
 
now to loop record, use your mouse to left click drag an area on the timeline where you want to loop.  then on the Control Bar, just to the left of the TIME display is an icon which looks like two arrows making a circle.  that's the loop button.  the one below it is the icon of the button to set the time for the loop.  however, if you've already marked the timeline like I said above, clicking on the loop button will automatically set the loop time to what you've marked.
 
then arm the track and it will loop and record.

Hi,
I understood what you meant, but maybe my solution didn't work?  the first part is supposed to be the part that solves your problem.  the part of changing the RECORDING MODE to SOUND ON SOUND should allow you to hear the previous takes as you record the current one.
 
if it doesn't, there must be something else wrong with your settings.

Sorry it took so long for me to get back to you.
 
I've just done an experiment on MC7 and that's exactly how it works, I can't find any other settings which would cause your previous takes not to be heard during loop recording if you have the Sound on Sound selected.
 
if it's set to Comping (default) then it will mute the previously recorded tracks and if it's set to Overwrite, then it deletes the previously recorded tracks on the loop.