It seems that I read on this forum  that you had to make a setting in wavelab before Liquid would x receive from wavelab does anyone remember what it was?

XSend To Wavelab yes, but not XReceive.

XReceive is for files like XDCAM and P2 cards.

From Wavelab, just import a WAVE file, etc.

What are you trying to export from Wavelab to Liquid?

I had a file that I X sent to add a some effects and noticed that in the X receive drop down box there is a wavelab function in there however it was giving me a ini. error so I thought that I had to set something in either wavelab or liquid for it to work

If you Xsend a file from Liquid, you just have to save it in Wavelab and it should be automatically updated in Liquid.

Or you can save as the file and re-import the file in Liquid, no XReceive needed.

The INI error is probably because you used "Use existing XReceive.INI" function in XReceive.