Hi, Farmer George here,
    I have been using Music Creator 6 for about 2 weeks now. Perhaps someone can help me find out why I have trouble most of the time getting Transpose to work. Weather I have a segment from the sequencer or directly played into cakewalk from my midi piano, TRANSPOSE only works about 5% of the time.  Most of the time the TRANSPOSE lettering is not in dark but light color form and can not be clicked on.
                             Thanks
                                         Farmer George        or     newjerseypotbellypig@comcast.net
                                               farmergeorgepotbellypigs.com

If a function is "greyed out" that means it is not available. Generally that means you have not selected something properly to use that function.
 
I don't use many of the midi functions so I would have to go in and research this to assist.  Have you looked into the HELP menu  about transpose?   That's where I'd start.  See what has to be done to get the menu item to go "solid" on you so it becomes active and not greyed out.

How are you selecting Transpose? From the 'Process' menu?
I think an easier way is to insert the Transpose plug-in in the MIDI effects (FX) bin, and if it turns out well, select the MIDI track and then Process>MIDI>Apply MIDI Effects.
But, I don't have MC 6 and don't know if the Transose plug-in I have is from an earlier version of a Cakewalk program or not. I can't imagine that they would remove such a handy function that's been with Cakewalk since the stone age, though.

I have a segment from the sequencer or directly played into cakewalk from my midi piano,

this statement is confusing to me.  I have a feeling you aren't using the transpose function correctly and that's why it's grayed out.  I don't know what you mean by played directly into cakewalk from your midi piano with reference to how you have the transpose function inserted in your project.

In regards to transposing..... are you referring to after the fact or from live input?
 
As I said I don't use midi very much but I do recall....way back in the day, using TTS as my synth, I could change the key the synth was playing in easily.  Most synths do have a transpose function built in to them.
 
This is for live input. But it also worked after the fact for changing the key of the original recording. If you recorded a piano part for a vocalist and then either decided the vocal needed to be in a different key (higher or lower) or you got a different singer who needed the song in a different key...no problem, simply transpose the entire part in midi.
 
Referring to TTS: In the set up menu for midi channel and volume and patch, there was also a box marked KEY.  Leaving a default 0 in that box retained the key you played in.  So if you played in the key of C major and the box was 0, you heard music in C major. If you changed the 0 to a 2, you played on the keyboard in C but the music you heard was in the key of D.  you could also use negative numbers.... I used this to play the bass by inserting a -12 in the box and the music came out one octave lower. I also used it to play something in a "difficult" key for my fingers.... such as E major. I would enter a 4 in the box and play in C on the piano and the music would be in E.  
 
I don't know if that's what you are referring to or not.