Well...firstly, it's simple as can be. I have no idea what recycle can do, cos' I'm all hardware...but this feature is killin'.
The key to this feature is:
1)being able to count time in music (I'm not trying to be smart ass here..this is something even the most brilliant composer may not be the keenest on)
2) being able to hear inside a loop where you want to slice things up.
An easy example:
Take a loop off any loop based sample CD, or any sample off a record.
Loops must be in an even time signature, and more importantly (though not always necessary) the hits should fall relatively square on the beat (and off).
1)Record (load) the sample. Let's assume it's a 1 measure loop in 4/4 time off a sample CD. You can choose create a program from the get-go..it's up to you.
2)Go to the sample list page, find sample (it should default to it) hit Region.
You're looking at the sample.You typically won't have to fix the start and end points ,cos it should be perfect..right - if it's a lift off a record you will need to tweak it.
3)Hit BPM...where it says beat, make sure it says 4 (for now)..check out what the BPM is...right it down, cos' that's good information to have (if you want to stretch or whatever later). A sample CD that says the loops are, lets say, 130bpm will register right around there, give or take(it's rarely gonna be exactly what they say on the CD cause it's all rounded a bit, but this machine is gonna nail it on the head 129.4 bpm....that's such a cool thing about this machine.
4) Hit region again, listen to the loop(play-all). Study it, ponder, wonder -how do you want to use it, is it a busy beat with a lot of 16th notes..is it slow with hit's just on the 8th note...what you're ultimatley gonna be able to do is seperate (slice) the beat up and isolate individual hit's or maybe two hits together if you want. You'll be able to play the loop in your song as a whole (as it came off the CD)(useful but boring and limiting) or create your own groove using the timbres of the hit's that collectively make up the sound of the loop.
5)After deciding what to do, scroll (still in region page) to the middle of the screen, highlight region and open window. This is where you select the number of regions..think of it as half note, quarter note...etc. We'll slice the beat in relation to the 8th note lets say, cause that's where the hit's are predominant in this beat, and that's what we want to capture (let's say). Turn the value to 8 then. Press do it.
6) You're back at the region screen automatically..1/8th of the screen is black...hit pad 16. That's the first eighth note "phrase" of the loop. Turn the wheel to region 2...hit pad 16, that's the 2nd eighth note "phrase" ..keep turning and listen to all 8, ...rinse and repeat -
7) This is where you can tweak the regions...for example some hit's may be a bit late..or you want to grab a bigger piece of a phrase.tweak it here by selecting the region and changing the start and end points...continue to audition on pad 16 till it's cool.

Hit edit, and wheel to slice sample. Here you can choose to create a program or generate a sequence. I won't go into detail as to which to choose ..it's up to your situation...but try 'em both.
9) press Do It. Lets say you created a new program in this case. Find it, put it in a multi and your off. All the hit's you sliced are right there, you can mutilate them any way you want now with all the other cool stuff you can do with this machine.
Remember we wrote down the BPM of the original loop..well the idea there of course is, you set up a sequence track now with that bpm, maybe lay the loop in completely as it came off the cd, and now also, you're able to lay in you're sliced hit's either over the top...or by themselves.
And that's just a drum loop...the possibilities are clearly endless with all kinds of material -
The 4K simply rocks -
Bop out