Echo Input is for monitoring THROUGH Sonar, so from the input, through the quad capture, through sonar and back out to the quad capture. it's used to monitor with FX and softsynths and will have problems depending on your sampling rate and buffer settings.
direct monitoring on the quad capture is used to monitor at the soundcard and is a completely separate entity from INPUT ECHO in Sonar. this setting allows you to record at the same time that the output from sonar is happening at the sound card, so you can monitor at the quad capture. if you're using direct monitoring on the quad capture, you should not be using INPUT ECHO.
According to the manual of the quad capture, there is a "residual noise level" when using the direct monitoring and it implies your gain should be unity with 600 ohm input impedance. that would mean you'll have noise at anything other than optimal parameters.
From the manual:
Residual Noise Level
INPUT 1–2 [lang="ja"][lang="ja"]→ OUTPUT 1–2: -95 dBu typ.
(GAIN: min., 600 ohms terminated, IHF-A)
* Internal Direct Monitor Mixer setting
Input channel fader: Unity