I finally got things working. I'm now able to record and play back using my Roland TD7 drums plus my Yamaha synth.
I took a guess and brought up the properties of the midi icon that was connected to my midiman 2x2 in AMS. I set the send and transmit channels to 10 and checked machine controlled midi. Then I selected td7 in the tracks window and also midi setup. I have a feeling that the channel settings and the machine control checked are separate functions. It could be that one or the other worked.