Assuming "USB MIDI interface" is your Prodpipe MIDI I/O then you should choose it for both MIDI input and MIDI output.
..then press "test connection"
Have you tried the MIDI Loopback Test in Axe-Edit (in Audio/MIDI settings) , read the instructions and give it a go.
Per
I did exactly that and the loopback test failed and it still says its not connected...any ideas why?
beneath the Midi Input , Midi Output,
it says : Axe-Fx Midi Channel
Midi Channel : and it gives options of numbers 1- 16. What do i press? thanks guys!