One comment:
In my experience, SoundFlower does not work well. At least on my G5 - playback is consistently marred by clicks and pops. Possibly it works better on an Intel machine - - but I wouldn't count on it. Some people have reported more success with Jack OSX, but I have not tried it.
On the other hand, for loopback - - sending the audio signal of the VE standalone back into a DAW - - hardware solutions do work very reliably. Audio interfaces made by RME and Symphony card based audio interfaces made by Apogee are accompanied by software that allows any output to be "looped back" to any input. I use a MOTU 2408 which is not graced with such software. It does, however, have three ADAT inputs and three ADAT outputs divided into 3 banks. I run a short ADAT cable from the output of ADAT bank C to the input of ADAT bank B - - then I set the first VE standalone to output on channels 17-18 and in Logic, I create an AUX channel whose input is the first stereo pair of Bank B (channels 9-10) and whose output channels 1-2. This setup introduces increased latency but this can be significantly reduced if the "Helper" I/O plugin that comes with Logic is inserted in the AUX channel with its (the plugin's) ins and outs set to correspond to the inputs and outputs of the AUX channel.