Did anyone find a good way to modulate a delay line from the note value so it would play the correct pitches?

Using the keyboardscaler module like in the accomanied patch you can tune the delayline to a chromatic scale. Due to the fact that the modules have an input/output delay of one audio system sample (1/96000 of a sec.) and the filter in the feedbackloop has a phase delay the tuning is a little too low in the higher notes. This can be compensated for with a high frequency track compensation that I send to the list maybe a half year ago. But here you got the basic principle used in a socalled KarplusStrong plucked string patching.

Yes, the best way to tune the delay line is to use the NoteVelScaler module. This technique was invented some time back by Richard Thibert in his "physicflute" patch. I'll try to dig this patch out and repost it if Rob H doesn't beat me to it. Rob Hordijk has posted a number of Karplus-Strong patches that uses this idea as well.