How do I get my keyboard to record into home creator program, and be able to play it on the computer?
First, make sure your Cables are connected correctly. The cable is labled from the 'computer's' point of view...so the 'midi out' cable is connected to the 'midi in' port on the Casio. Then the other cable is easy!
The next thing needed is to 'set' the drivers for the midi ports, from within the program that you are using. There is usually a 'drop-down' option...to select the input (this allows the Casio to play the computer soundcard)....and the output (this setting chooses the 'local' soundcard, or the 'midi out'...to your Casio's midi input). If you aren't sure which driver is which...just try them out...you wont break anything.
Questions #2 & #3
Also I have Reasons 2.5 on another Brand New computer that is USB friendly. Can I and How do I plug in my midi keyboard (Casio 1200) to utilize this amazing software and it's soundbank?
There are 'USB' midi cables: http://www.musiciansfriend.com/srs7/sid=.../base_id/100498
This works the same as a joystick midi cable, it just uses the USB port. This is handy for use with computers that don't have a 'joystick' type port. It isn't any faster or better...just a different way to the 'ports'. The same information I gave in the first question will apply to the Reasons 2.5 program. Just find the correct drivers...and you will be making music.