All - thanks for the help. I'm not sure what was going on - but it seems to work fine now. I can't explain it - Maybe something was wrong with the project I was working on. I opened a fresh project and was able to drag and drop grooves from BFD3 directly into a MIDI track without issue. After rebooting, I went back into my previous project - and it all works fine. I can't explain it, I think I'm doing the exact same thing I tried 5x before, however in a new project and after a reboot, all is well - who knows. thanks for all the help.
@JIH64 - No, I'm just dragging BFD3 grooves directly from the groove list (not from the timeline), as is done in this video at 1:09
https://www.youtube.com/watch?v=iJ50DumaABA Thanks again all.
Russ