I obviously need to research this external insert thing. I have wondered about it.
The way I have been using an external effect seems too complicated and limited. I send a track to the digital out of my V-Studio IO, plug that into the effect (which luckily accepts digital), then bring digital in back into a separate track.
In the ancient analog days it was simpler: every track on the board had a quareter inch in and a quarter inch out so you could patch an effect right in. It seems way too hard now in a 30 to 60 track project with only eight ins/outs on the IO (plus the digital). 7 of the inputs are always in use: 3 stereo keyboards and a mic. Of course, I could unplug a keyboard that was not needed at the moment, but it would be nice to use one or several effects without rewiring everything.