John
Also one should only use this if there is a known problem with DC offset with your audio interface. Otherwise it should not be used. 

Yeah, that's a good point, John.  Your interface should not be putting out any DC component.  I always just had it on for "good measure" ... figuring what harm could it possibly do?  (I gotta stop figuring ...)

Some microphones will offset the signal in one direction more than in another.
I see this often in radio interviews where reporter and interviewee have separate 
microphones. One side of the waveform is "rounded off", yet no distortion
is discernible (on speech).
 
If only one microphone is recorded per track, you should be able to get rid of this offset.
 

Hi Pete,
 
I was not able to reproduce this until I saw that the recipe involved recording both sides of a stereo input pair to mono tracks simultaneously. Bingo, I can reproduce that. I did not use mics or even an analog input; it's reproducible with ADAT input from a hardware synth. And, as you pointed out, it's not in the signal while it's being recorded; it appears to be getting generated by the DC Offset removal algorithm as the data are written to file(s).
 
I'm not sure why other's can't reproduce it since it seems like a DSP problem that's all "inside the box", but I think your detailed recipe should be good enough for the Bakers to get to the bottom of it. Good one.

brundlefly
Hi Pete,
 
I was not able to reproduce this until I saw that the recipe involved recording both sides of a stereo input pair to mono tracks simultaneously. Bingo, I can reproduce that. I did not use mics or even an analog input; it's reproducible with ADAT input from a hardware synth. And, as you pointed out, it's not in the signal while it's being recorded; it appears to be getting generated by the DC Offset removal algorithm as the data are written to file(s).
 
I'm not sure why other's can't reproduce it since it seems like a DSP problem that's all "inside the box", but I think your detailed recipe should be good enough for the Bakers to get to the bottom of it. Good one.

Thanks for doing that brundlefly - I appreciate it.  If this issue is common after all, maybe the Bakers will fix it.  Well, after they're done with the Christmas cookies!
;-)

I recently had the same problem too.  I never used the 'remove offset' switch in the past, until chasing a different issue when I found it again and thought it wouldn't hurt turning it on.  I recorded 16 simultaneous tracks of acoustic drums, and it sounded awful.  I heard a bad distortion on the two kick drum tracks (inside mic and subkick) that sounded an awful lot like digital clipping or maybe a sketchy cable or bad mic.  After switching snake channels, mic cables, channel strips and audio interfaces, I finally traced it down to Sonar.  In thinking back to the changes I recently made, I remembered turning that feature on.  For giggles I went back, unchecked it, and test recorded again.  Perfect!  FYI, more than just the audible distortion, it also affects the overall sound.  Kinda like having a compressor set completely wrong....it's hard to explain.  But it was really noticeable on the kick drum.  I'm running Platinum Kingston 64-bit and everything is back good again.   

Just tested this in Lexington. Still a problem, FYI.
 
Pete, any response from Cakewalk over on the bug report system?
 
Thanks.

WalkerTalker
Just tested this in Lexington. Still a problem, FYI.
Pete, any response from Cakewalk over on the bug report system?

The current status is "Submitted to Development", which happened on the 23rd of December. I haven't heard anything beyond that.

Did a quick test: this seems to be fixed in Newburyport.
 
Can anyone else confirm?
 
Thanks.

I haven't installed Newburyport yet, but when I do, I'll test it.