cassp,
This has been a complaint of mine for a long time with most arrangers.... The majority do not allow loop recording within the 16 track sequencer. They do however allow it when you're recording styles, but that too is quite limited. The style recorders work well for drum tracks, but when you're recording bass lines, and other tracks you have to stay within a specific key sig.... I don't see why Yamaha cannot add loop recording to the sequencers... (actually I don't think it's possible on the disk based recording models), but with their newer line up like the PSR-2000 this feature should be on there... If I remember correctly Yamaha even left out loop recording on the 16 track sequencer on the 9000 Pro, and set it up the same way to loop and overdub under style recording..
Squeak
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GEAR: Yamaha MOXF-6, Casio MZX-500, Roland Juno-Di, M-Audio Venom, Roland RS-70, Yamaha PSR S700, M-Audio Axiom Pro-61 (Midi Controller). SOFTWARE: Mixcraft-7, PowerTracks Pro Audio 2013, Beat Thang Virtual, Dimension Le.