The problem seems to be with TH3. I have a demo version of Bias FX and that works just fine.

It sounds like you may not have your TH3 track configured correctly.

After applying the WDM/KS settings I mentioned earlier, open the Preferences>Audio>Devices tab and enable the USB Input Device.  Hit apply and close preferences. 
 
Open a project and insert an audio track.  Select the USB Input as the track's input source, and enable the input echo button for that track.  At this point you should be able to hear your guitar and see audio levels coming in on Sonar's track meters.  

To add TH3, just load it into the track's FX region as you would any other VST effect. 
 

When I use WDM/KS, I get an error message. The only Driver Modes that will show the Rocksmith cable are MME and WASAPI but WASAPI doesn't like the Rocksmith cable and I get error message with that as well. I did get TH3 to work using the MME. However I can't hear anything until I turn Track Record on and off first then it's fine. TH3 is OK, but Bias FX is much better. Thanks a lot for all your help guy's. Much appreciated.