Hello Everyone,
 
I was just wondering what this option is used for and if it should be on or not.  By default, Sonar installs with "Triangular".

I thought dithering is just for exporting when using different bit/sample rates within your file.
 
I am not understanding fully what this option does and what it should be set to.

Thank You!

Basically, dithering is useful when you are exporting or bouncing to a lower bit depth than the source audio. It prevents the reduction in bit depth from adding perceivable noise. That's it.

If you want to really understand dither, and how it relates to bit depth, this video covers it very well from 8:42 onwards.
 
http://xiph.org/video/vid2.shtml

Great, thank you very much!