ok, several reboots and panics later.... (I dropped the Faderport usb cable behind the back of the desk and had to mount a major expedition to retrieve it..)
Delete aud.ini Didn't help
Start with ctrl-shift Didn't help
Open project with Shift (say no to all plugs) Didn't help
Remove all midi Didn't help
Remove audio interface Didn't help
Some combinations of the above actually made it worse, new projects that would open stopped opening...
I've managed to restore it back to the original ini file and midi/audio config and now I'm back where I started.
I can create NEW projects perfectly fine and everything works exactly as expected.
I can't open old (read last week) projects that used my old interface. Sonar goes into a loop and locks up.
Getting desperate now...