Could be but since a VSTi is basically its own entity in a host, a free lfo, ie. not synced to triggering the key, it goes around it's loop indefinately indifferent to if the tune is playing or not. There's no way to hit the exact spot on a free lfo when you press play, capishce?
Anyway this is going far from the fruity engine discussion. It clearly has trouble even with samples, but i'm still not convinced that proves anything... will have to try the same thing on another sequencer.