Can anybody help me set up my speakers please?
 
I have Edirol MA-20D speakers connected to the unit via a 2in 1out jack into the headphones socket but I'm not getting proper stereo so my panning is not working. Do I need to different connection leads  or more modern speakers ? 
 
thank you
 

It seems that the LINE 2 Input jacks of the Edirol MA-20D speakers are unbalanced, so you need 2 cables with XLR female to TR 1/4" (Mono) to connect your speakers with the analog outputs of the Babyface.
 
Important: Pin 3 of the XLR connector has to be not connected (free)! 
The analog outputs on the Babyface* are not servo-balanced, so a connection to ground would lead to higher distortion (THD).
*Babyface (discontinued model), not sure about the new Babyface Pro.
 
As an alternative you could connect it digital via a SPDIF (optical) cable.
In Babyface driver settings dialog you have to select Optical - SPDIF (instead of ADAT).
 
Seems easier but then you use the DA converter of the speakers instead of Babyface' DAC.
If you could try both methods and don't hear a difference, then that doesn't matter, of course.
 
HTH a bit.