I posted the above while I looked for this info found on page 69 of the Reference Guide
To create a new project using per-project audio
1. Select File > New.
The New Project File dialog box appears.
2. Enter a filename in the Name field
The Location and Audio Path directories are automatically updated in the following format:
C:\default directory\<project name>. The default directory for new projects is assigned in Edit >
Preferences > File - Folder Locations. <project name> is the project’s per-project folder name.
C:\default directory\<project name>\Audio. The default directory for new projects is assigned
in Edit > Preferences > File - Folder Locations. <project name> is the project’s per-project folder name,
and Audio is the subfolder where your audio data will be stored.
3. If you want, rename the Location and/or Audio Path directories.
4. Click OK.
To save an existing project using per-project audio
You may have older files that are not using per-project audio folders. If you want to save these files using a per-
project audio folder, use the following procedure:
1. Open the project whose audio you want to store using per-project audio.
2. Select File > Save As.
The Save As dialog box appears.
3. If you want, change the name of your project.
4. In the Project Path field, enter the new directory where you want to save the project, or use the Browse
button to the right of the field to navigate to an existing directory.
5. Select the Copy all audio with project check box.
6. Click Save.
7. SONAR copies the project to the directory specified in the Project Path field and stores all the project’s audio