John
You will need a projector but Sonar will do just fine for video playback
Not for this purpose I don't think. If OP just wanted to stream a single vid from the Video View then perhaps but that would require a manual action anyway and there are much better video players that could be used for that type of action.
What I think OP wants is MIDI triggering of specific vids (and lights) at specific points. That can of course be done FROM Sonar PRV or any of the other MIDI options but would require another program for the vids that can accept MIDI signals to activate specific vid playback. Same goes for lighting rigs that accept MIDI.
Essentially the vid program and lighting program act as "virtual instruments" except instead of triggering sounds/samples they trigger videos and lights... and I guess in the case of video and hardware units designed specifically for this type of thing it would be more like having MIDI playback in Sonar controlling an external hardware synth.
So... yeah, since Sonar can of course be used to program and playback MIDI you just have to get those live signals out to whatever vid/lighting hardware you intend to use.
I have seen quite a few vids on this topic using Ableton (which seems much better suited/designed for these things) but the principle is the same.
Check out youtube for "Ableton Live Light Show Gear Control" and any other buzzwords on the topic and you'll find those vids.
Then you can translate that knowledge to what Sonar MIDI can do. It's the same stuff really just maybe not as "Baked In" or well documented as the Ableton methods.
Lighting gear these days will generally have some kind of MIDI control options. I think it's the video aspect that might take some doing.
That is of course if you actually want music based vid triggering and/or interactive vid triggering by band members on stage.
Just gitting play and having something play in the background from a projector ain't no thing. You just hook up the projector... press play on the vid software (could be WMP or anything really) and that's that. Sounds like you want something more interactive though.
Cheers.