I think the problem lies in how I don't have an option to record enable the audio track. The usual 'r' button on the audio track does not exist. Any thoughts?
Curiously, when I opened the file there is a record enable button on the audio track.
(Oh, and when I tried to attach a screenshot of the mixer the file was too big as well.)
So yeah, select audio track, click R button, select software instrument track, bring up EFM1, record with software instrument track selected and use the mouse to change parameters on the EFM1.
BTW, I don't think that you can use the Caps Lock keyboard to send control change messages (although I might be wrong.)
Anyway, emailing you a different project folder which should hopefully work for you. Let me know whether this works or not.