Sure it is. But getting it to work can be confusing.
I use Cubase SX2. Dunno what you use but the process should be similar.
The problem with Cubase is that every track is receiving messages ALL the TIME from whatever input source they're assigned to. They also (by default) receive on EVERY channel rather than just the channel they're assigned to play back on.
To prevent them from doing this, you have to set up filters on every MIDI track in Cubase that say "unless the incoming MIDI data is [insert channel #], drop it"
To do that in SX2, select a MIDI track, set the MIDI in to whatever input port your MPC track is on. Assign it to a VST instrument, and click the weird arrow in the left margin where the track info shows up. If you mouse over it before clicking it, it'll say Input Transformer. This is the key to making things work properly.
Click the transformer button, select Local. The Input Transformer window will pop up. Click the dropdown for Mode and select Filter. Check Active Module 1 and make sure Selected Module is 1. (it should be) Click the Add Line button in the top half. Click the words "Value 1" and choose "Channel" instead. Click "Equal" and select "Unequal". Then choose whichever channel you want the track to work with. Close out the window and you're done with that!
The MPC track, the MIDI track in Cubase, and the receiving VST instrument should now all be setup to the same channel and should work properly. Only catch is, you've gotta set each track this way, and it can take some time.
A time saver is start a New project and choose 16-channel MIDI Sequencer, set up each of the 16 channels to work in this way, (or you could even use both of the MPC outs to control 16 channels on two different ports, giving you a 32-part multitimbral setup...) and Save as Template from the File menu. That way, any time you want to start an MPC-sequenced project in Cubase, all you have to do is select MPC Project, or whatever you happen to call it.
Or you could just use this template file:
http://www.thynctank.com/MPC_Project.cpr
Open that up and save as template. It's all set to go, but you're gonna need to adjust your device setup for your given situation. MIDI ports will need changing and Audio devices in and out will need changing but it's a lot of work saved for you in the long run. Oh, and if you don't get it, the audio track is for you to listen to your MPC's click track on.
Thank me later.
-tank.