According to the manual it does. I believe it has the same FX processor as 03D (??) but I haven't tried that effect so I don't know the quality (I'm a guitarist myself so I don't like the general effects device distortions anyway).

I have connected the 1402VLZ so that:
- ALT3/4 outputs go to DS2416 analog ins.
- DS2416 analog outs go to mixer stereo channels (e.g. 11-12).

With this you have two easy-to-use possibilities to connect the external MIDI sound modules:

1) Feed HD tracks (via DS2416 outputs) and outputs from MIDI modules to mixer main stereo output (mute buttons up).

I use this while I compose/build the song. It allows me to record one external instrument to DS2416 (via ALT3/4, mute down) while I listen other external instruments and HD tracks from DS2416 via 1402VLZ main outputs.

2) Feed outputs from MIDI modules to mixer ALT3/4 channels (Mute buttons down). Since ALT3/4 are connected to DS2416 analog inputs they go to DS2416 mixer channels 17-18. There you are able to process the MIDI module sounds (e.g. common EQ, aux effects or compression).

The final mixed output (HD tracks and MIDI module output in DS2416 channels 17-18) then come out from DS2416 outputs to 1402VLZ main outputs.

I use this method for the final mix. It allows me (at least with Cubase VST) to record the final mixdown directly from DS2416 to harddisk (while I listen it via analog outputs).

Also:

In both cases the 1402VLZ mute button is up for the DS2416 output channels.

If you would have 4 (or more, real) bus mixer then you would of course use the busses instead of ALT3/4.

regards VP