ampfixer
So that sounds like you can set the inputs so hot that the signal distorts, but what you record is very quiet and distorted. Sounds like a set up problem in Sonar.
Sorry John, but I think you're missing the point.
The only way to control the input level going into Sonar(and hence to disc) is via your interface/mixer/pre-amp
As John rightly points out, if the signal is clipping at your converters, you can lower the fader all you want in sonar but the signal will still be clipped.
Sonar CANNOT know what's going on "outside the box" which is why it's extremely important to set your gain staging correctly right at the beginning of the chain - in this case microphone & pre-amp/interface gain.
During recording, the track level indicators in Sonar are for monitoring only - hence the need to keep them at unity to show exactly what level you can expect after recording. Adjusting this fader up or down makes no difference to the recorded signal but will make it impossible to accurately monitor what's being recorded. The same applies to the input gain (trim) at the top of the channel.