Thanks John, yes that was the solution I came up with - as I wrote earlier - in fact I can do this with an MP3 of the data as well as wav (using Audacity) and it does reduce the sized somewhat, however it is not ideal and is labour intensive when dealing with multiple parts to edit. But it is a solution haha!
And yes I totally agree, it is the desired behaviour

it was a method of running live dynamically mixable MP3 parts that got me along this path - it is the one thing I miss about MIDI, that ability for live control.
I am also looking at using Sonar itself as the live tool, however I have not come across any way to remove projects after they are finished, using the Playlist option. As I wrote earlier, when one has say 30-40 CWP's stacked in the background, then I can see possible issues coming from that.
Still there may even be a work-around for that too

Unfortunately Scook did not comprehend my posts, and simply took the view I was not looking for a solution...I did try to keep it light, hence the laughs etc...he must have been having a bad day hahaha!
Thanks for your post!