ohgrant
From what I understand so far, the guitar preamp tones are built into the software, not sure if it's possible to use the patches with Sonar or if you can use 3rd party soft amps like, Gearbox or Amplitube with it.
If everyone has the software it is not an issue ... what you do "at home" is being done BEFORE it gets transmitted to the other place, so regardless of what you do it should be fine ... you are essentially jamming with what is coming out of the speakers ... which doesn't care what you are using, is what I am thinking from a computer perspective.
This will be fine for rehearsing and creating music, but not very good for "live" jamming at all ... any delay or timing issues will be pure heck and a mess in a "live" transmission of any kind and a synching issue is on the way.
The nature of internet connections right now, with the Cable companies hurting your ability to stream anything over the internet, will not allow these kinds of programs to work correctly and efficiently until the day that the Internet is no longer controlled by interests that want to sell you the next Hollywood blockbuster, be then TW or Comcast ... !!! The downside is that the music business is the one that can help this stuff get better and more important, and these companies are killing the music business instead!
The latest is to increase your speed, and this is NOT what you need for these situations ... you need the BANDWIDTH to make this happen, and unless you have a guaranteed (make it in writing too!) and someone that can verify that you are getting what you are paying for ... I doubt that we will see this work properly in our time ... it is not the design that DSL or the Cable companies can use ... and there are other concerns.
I wouldn't do this unless you were all in Unix systems, where you can verify and make sure that your connection is not being hammered and screwed up silly with some stuff from Microsoft or McAfee or Norton or some stupid iTunes update/check, the kind of stuff that tends to eat up the resources in your computer. If you can not guarantee that everything else is "clear" in your system, it will slow down what you are doing.
Until such a time as the commercial internet services offer an alternative that it more helpful, stuff like this is the dream for you and I ... sadly, it won't happen.
I think it will only happen the day that the FCC opens up Wireless for good ... and this will create some serious competition for Internet Providers and the difference will be ... the ones that hold and have the better connections and everyone else falls off. The way things are right now, cable is your option but with the major systems making sure that your streaming is hurt (there is a hesitation between Portland and Vancouver that prevents World of Warcraft from working smoothly!!!! as an example) ... the chances of something like this working right is ... hell!
Try playing 2 World of Warcraft accounts at the same time ... remember that this would be 2 data streams going to the same place, and look at the difference between them ... it's so bad sometimes that it is reidiculous, but right there ... is my best example for you!
If WoW doesn't work right, what makes you think music would? It's a provider issue, not a software/hardware issue for the most part.