Many thanks for looking into this. The issue is 100% reproducible here both in standalone and Audio Unit host.
I am running the 32bit version of SEM in Vienna Ensemble Pro, but have also tested standalone on the same system. System is 12 core Mac Pro running 10.6, 32GB of Ram.
Easy way to reproduce would be to load up: DN_InstantAction_SQ
Just open the 8-Voice Programmer and play some notes. You'll see straight away that the sequencer does not reset when a new note is pressed, it just moves on to the next step.
Would be really grateful for a quick bug-fix so that issues like this and the MIDI channels problems reported separately are addressed soon. It's hard to use as things stand.
Thanks again for your help.