Hello again. I tried all kinds of things and a solution I found was to open LMMS in an ALSA wrapper for OSS applications.  That is to run $ aoss lmms at a terminal. Now the plugin works fine. 
Thank you to all who tried to help me. I'm not sure if this information is useful yet, but could be if anyone else encounters the problem.

Jeff Ohrstrom



> Date: Fri, 29 Jul 2011 06:00:20 -0700
> From: mkrus18@hotmail.com
> To: lmms-devel@lists.sourceforge.net
> Subject: Re: [LMMS-devel] Audio File Processor not working
>
>
>
> Jeff Ohrstrom wrote:
> >
> > I'm running the newest verision of Ubuntu,
> >
> unfourtunately not my area :/ -so i cant aid you, sorry
>
>
> -----
> Hope this helped
> BR.
> ---------------------
> Tutorials and some music on : http://www.youtube.com/user/bearsoundz
>
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