E-MU0404 sound card problems with sonarx3e

Hi:
I am running x3e and e-mu 0404 sound card pci with daughter card.
I have no problems with sound in a regular win environment. I have the integrated sound disabled.
When I start X3E I have to configure through the asio
  driver settings and per track, outputs and inputs same thing.
however when I close sonar I have lost all sound. Movie maker fails, all sounds, media files web media etc all fail.
I have to open the emu notification icon exe and restore defaults for the e-mu card and then restart the system to restore the sound. I have searched quite extensively but to no avail.
 Any help would be appreciated. thank you in advance
 
 
 
 
 
 Operating System: Windows 8.1 Pro 32-bit (6.3, Build 9600) (9600.winblue_r3.140827-1500)
           Language: English (Regional Setting: English)
System Manufacturer: Gateway
       System Model: GT5028
               BIOS: )Phoenix - Award WorkstationBIOS v6.00PG
          Processor: AMD Athlon(tm) 64 X2 Dual Core Processor 3800+ (2 CPUs), ~2.0GHz
             Memory: 2560MB RAM
Available OS Memory: 2558MB RAM
          Page File: 1037MB used, 4591MB available
        Windows Dir: C:\WINDOWS
    DirectX Version: DirectX 11
DX Setup Parameters: Not found
   User DPI Setting: Using System DPI
 System DPI Setting: 96 DPI (100 percent)
    DWM DPI Scaling: Disabled
     DxDiag Version: 6.03.9600.16384 32bit Unicode
 Description: Speakers (E-MU E-DSP Audio Processor (WDM))  Default Sound Playback: Yes  Default Voice Playback: Yes             Hardware ID: PCI\VEN_1102&DEV_0008&SUBSYS_40041102&REV_00         Manufacturer ID: 1              Product ID: 100                    Type: WDM             Driver Name: ctaud2k.sys          Driver Version: 6.00.0001.1246 (English)       Driver Attributes: Final Retail             WHQL Logo'd: No           Date and Size: 2/23/2010 21:45:30, 524888 bytes             Other Files:         Driver Provider: Creative          HW Accel Level: Basic               Cap Flags: 0xF1F     Min/Max Sample Rate: 100, 200000 Static/Strm HW Mix Bufs: 1, 0  Static/Strm HW 3D Bufs: 0, 0               HW Memory: 0        Voice Management: No  EAX(tm) 2.0 Listen/Src: No, No    I3DL2(tm) Listen/Src: No, No Sensaura(tm) ZoomFX(tm): No
--------------------- Sound Capture Devices ---------------------             Description: Wave (E-MU E-DSP Audio Processor (WDM))   Default Sound Capture: Yes   Default Voice Capture: Yes             Driver Name: ctaud2k.sys          Driver Version: 6.00.0001.1246 (English)       Driver Attributes: Final Retail           Date and Size: 2/23/2010 21:45:30, 524888 bytes               Cap Flags: 0x1            Format Flags: 0xFFFFF

Thank you for your reply. I tried as you suggested and used WDM, I had some functions but it kept failing. It has been suggested quite often that asio for emu and sonar are the way to go, I get hardly any dropouts and or freezes.
Switching to wdm didn't make any difference, something is rewriting my sound config file and its only against e mu. If I enable system sounds and use the webcam with the internal mic My movie maker works, but when I switch to emu wave for my mic input it fails, till I restore Emu defaults and restart win. Then its fine again till I leave cakewalk. I have tried every combination to no avail. I never had this prob in previous older installations
FYI I am using asioforall , I can lower my latency to 10 before I lose signal and or slow midi

Try using the setting in the Unified Preferences view "Share Driver with Other Programs." If you didn't already try that.

Have you downloaded the latest driver for the 0404? I see that there is no Win 8 driver, though.
You should probably remove ASIO4All from your system before attempting to install Creative's real ASIO driver.
http://www.emu.com/index.php/component/phocadownload/file/4-pciedasdriver