I will pass along this clue while I dig into this.
1. In the target image, I put in a Transcript show: 'mde' ;cr in the Morphic>>mouseDown:evt method. While running that image natively, it output the trace code. Running the image as a simulation showed no output.
2. In my host image, I put a trace Transcript show: 'hmd:evt';cr. in Morphic>>handleMouseDown:anEvent
then launched the simulation. Clicking in the Simulation morph, produced the events from the host environment.
The (probably naive) thought I have is to just forward them to the StackInterpreter (whatever that means). If a solution is obvious to anybody who knows anything about Morphic, please let me know and I will implement it.
In the meantime, I am going to teach myself Morphic (:
tty