I am a novice using music creator 6 with an axiom controller.
I can fade the audio track easily but any tracks that I created using the
virtual instruments only allows me to drag the end of the track in it's
entirety - it seems to bypass the fade option?
What am I doing wrong?

Music Creator supports automation, does it not? Never used it, so I'm guessing. But if it does, you should be able to create a MIDI volume envelope on the MIDI track and fade it that way.

^ I'm with Bit! Provided, I have no hardware controllers, automating within the DAW avoids alot of "unforced" errors (even if you did fader movement with the mouse using the software mixer).

Automation saves alot of hassle (in more ways then one, but depends on what it's used for.)

yes, Music Creator supports automation.  that's the way to go.