I decided to try going down the MIDI route to control the TC Helicon and this works so I will stick with that.

To all of you who took the time to help thank you.

Btw, you were very close to having the VLT properly configured!  The only thing you missed is physically removing the connection between the VLT's AUX OUT and your DAW.  Just unplug the cable coming from the 'GUITAR THRU' port on the VLT and you would've been able to keep everything in the digital domain.  By going through your mixer as a regular FX Loop, you're going from digital to analog and back again for no good reason.  If you're still doing this 'your way', I'll be happy to help explain it further if necessary.  I'm running X3 with a VOICELIVE Touch 1.

-Skep