Yes, I have read the manual front to back, and I went back and reviewed the section you noted.
That was actually helpful because I hadn't paid much attention to that section at first because I am using it as a plugin, but that does allow you to set the channel you are using for the modulator even when running as a plugin. It just happened to work for me because it defaults to 1 and that was the input I was using.
I don't want the synth to be the carrier - I want an external input for the carrier. Separate from the one that I already have for the modulator.
I.E I want a talking guitar coming from external, not a talking synth...