Hah! Solved my problem with the Rosewood Stick. I added some additional damping at fret 3 and everything is working really well.

Another detail wrt MIDI encouraging accuracy. I'm finding that MIDI is much more sensitive to finger placement. While I can be a bit sloppy with my finger placement working "acoustically," not so when I'm running through MG2. It really encourages me to get right behind the fret, not in the center between the frets.

I'm looking forward to using MG2 if for no other reason than practicing repertoire as it really does reach out and give me a slap if I'm not being precise.