The 'i' stands for 'instrument' - ie something that responds to incoming midi note numbers and controllers.
A Vst is usually just a simple effects plug-in. Soft synths are all Vsti's, DXi's or equivalent.
To record knob movements you need a midi merge unit, so that midi from both your controller keyboard and the Virus can be sent to the PC.
In the meantime: first record the notes into your sequencer, then unplug the midi cable from your controller keyboard and plug it into the Virus' OUT. Set another track in the sequencer to the same midi channel as the one you just recorded into, and use this to record the knob movements.
If nothing happens, it might be that the Virus' LoPage is set to Sysex, and your sequencer is set to filter this out. In this case, either set LoPage to Ctrl or enable Sysex record/playback in your sequencer.
Hope that helps!
-=BC
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