Just so you guys don't think I'm nuts. Here is the official response from Cakewalk. Seems there is a problem for users of Ultrafunk prior to Sonar 3.
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We are aware of this problem in the patch and therefore it is being removed so that the problem can be fixed. In the meantine follow these steps to reinstall SONAR 3.0:
a) Completely un-install SONAR from your computer. This is normally done from Start | Programs | Cakewalk. This will not remove any of your files or audio data.
b) To make sure nothing else is running while reinstalling SONAR in step 'e', choose Start | Run and type MSCONFIG. Click OK, choose Selective Startup, then uncheck the Load Startup Group Items box. Click OK, and restart Windows. You can always recheck that box at a later time. In Win 2000, click Ctrl+Alt+Del and manually End Task on the items you don't need running. Restart your computer.
c) Click the Windows Start button and select Run. At the prompt type REGEDIT and click OK.
Backup your Registry before making edits - you do this by clicking the Registry menu, Export Registry File.
Now delete the following Registry keys
HKEY_CURRENT_USER\Software\Cakewalk Music Software
HKEY_LOCAL_MACHINE\SOFTWARE\Cakewalk Music Software
Please note that this will remove any effects presets and key bindings you may have made in Cakewalk. You can back up those registry keys separately if you like.
d) Delete the files AUD.INI and TTSSEQ.INI from the SONAR program folder.
e) Restart your computer, then reinstall SONAR.
Andy Maddock
Cakewalk Technical Support