Originally Posted by bifbangpow
clearly somehow REASON is usurping my midi signal even if it's not open.
Welcome to the forums.
No offense, but you can only make a statement like this if you know what the problem is and what it isn't.
Also, I can't see that being true...software that isn't running can't do anything.
It is possible that something else got corrupted during the install process.
What is your OS? What version of Reason? is it from a CD/DVD or a download? If it is a download, from where did you download it?
Meanwhile, it's a good idea to register your reason license on the site (your account at top of page) so you can ask support questions in the user forum.