Open Sonar,
Start new project by selecting a template from the default lot that come with Sonar.
Give the project a name select Use per a project folders save and away I go.

When I look at my projects directory I have the following:
My Projects
My Projects/my song.cwp
My Projects/Audio
My Projects/Audio/my song1.wav
My Projects/Audio/my song1a.wav


If I now create another project using Per Project folders
I end up having the audio go to the same audio folder as in the above example

And I end up with the audio from multiple projects in the same audio folder.

I have to manually create the project name folder myself.

I don't ever seem to get a folder named My Projects/My Song by selecting use per project audio folders.
What's going wrong? I'm having a brain freeze and I fully expect someone to make it go click and after a face palm and a firm DOH! I'll be good to go.

I always create a new sub-folder for the project withe the project's name and save to that.  Then when I open it, there is an "Audio" sub-sub-folder with all the project audio in it.  Every version I save in that sub-folder has its audio go into that Audio sub-sub-folder.

That's not the way it's supposed to work. It's supposed to create the folder for you.

mudgel
That's not the way it's supposed to work. It's supposed to create the folder for you.

It does, that's what I do, new Project, give it a name, the Per project audio folder thing, done. Project name folder created with it's own audio folder inside.

Perhaps I've misunderstood the wording in BRainbow's post as its a little ambiguous when he says
"I always create a new sub-folder for the project withe the project's name and save to that. "

anyway all solved.
There are 3 fields in the create New Project Dialog:

Project Name: Enter <My Song>
Location: Sonar automatically appends the project name to this path eg Cakewalk Projects/My Song
Audio: Sonar automatically appends the Audio folder the full location path eg Cakewalk Projects/My Song/Audio

I don't know why but after I entered a Project Name, it didn't automatically populate the information in the Location field and Audio folder fields. I hadn't noticed. Consequently I would only get a new My Song.cwp with all the audio going into an Audio folder at the same level.

It's been bugging me for about a week now (just before Foxboro). So I went in and reset the default project location, closed Sonar, reset the location and on re-opening nothing, still the same. This time I tried a reboot after which everything works as its supposed to. Phew!