mp3 files must be converted to wave during the import process. I am not sure where that conversion takes place, it may be trying to write to the device hosting the mp3 which may explain why the import process is sensitive to the location of the files.

You can't import from compressed files either. Like, if the file is zipped, you have to unzip it first.

gswitz, that's exactly what the issue was. The root folder was a zipped folder. That's why Sonar couldn't access it.
After unzipping the folder, I can open the files right from the browser window. The folder icon was so small, that I didn't realize it was zipped! Thanks to all for the help.
Randy

Nice. You might update the subject of your first post to say solved. That'll save people the trouble of reading the thread.

Don't know who updated the title to "solved", but Thank You