You might try the VSL forums on vsl.co.at -- the actual VSL folks are there and often answer questions directly.
That said, are you sure you have the right legato/repetition/alternation setting loaded on the track you're using the legato/repetition/whatever instrument on? Legato instruments DO have a kind of "grace note" built into them when you're NOT playing them through the performance tool. Are you sure you're routing the audio through the tool?
If so, have you tried just restarting everything? Sorry, I know this is all basic, but when I have this problem one or the other is always the culprit. Sometimes it just needs to have everything reset.
VSL also put out a DVD tutorial for the performance tool. At $40 for only about half and hour of tutorials (for a given system, giga or EXS) I found it overpriced, but it is a good way to get started quickly.