Greg, try this please.
Plug your guitar directly into the Hi-z input on the interface. Set the volumes on the guitar at full and manually adjust the gain on the interface to get your input level to hit around -6 at it's peak (if recording in 24bit then aim for -6 but don't be worried if it spends more time around -12)
Then record this into sonar. Make sure you do this on a new track and you have not adjusted the trim/gain in sonar.
See what happens when you do this and see how it sounds. If all good, then plug all your effects in after the guitar, pop it into the Hi-z input again and do the same process and see if the results are the same.
The wave file you posted above doesn't look too odd, other than being quite low amplitude.
Another thought, are you sure the distortion is coming from the recorded guitar tracks? are you sure that you are not experiencing issues with your monitors? Check using headphones to see if this is the case.