I think I the draw duration field is OK.  I guess I need to go ahead and upgrade.

Upgrade has nothing to do with this behavior. In my Platinum the "Event Draw Duration" is what defines snapping in the Staff View.

Give what dilletant suggests a try with that new project.
 
If that doesn't fix it, call Tech Support for sure!

Yep, tried a new project.  Something is broken--although it is hard to imagine how a Sonar function would just stop working.  I will contact Tech Support.

I've always used 960 ticks per quarter.

I should change ticks to a higher value, but I've been doing 120 since Windows 3.1 so I know exactly how many ticks in each note, how many ticks to offset for doubling, how many to make each not for a glissando, etc.
 
 

Just wondering what the status was on this.

Status: Not resolved.

I would advise an upgrade to Platinum, in my opinion X1 was the most unstable version of Sonar X series to date.  I have found Platinum to be rock solid, and well worth the upgrade price.

Sorry to bother again, but is there ANYTHING I am missing?  Is there anything in Sonar that controls this except 1-the snap grid (the thing that looks like graph paper with an arrow and a note value next to it), 2-the snap and nudge settings in Preferences,  and 3-the event draw duration (which really only affects the duration of the note—not the snap)?
 
If this were just a normal bug, I can't believe things would work for years and then suddenly stop.  There must be another setting somewhere that has gotten turned off.
 
This is a huge productivity issue.
 
Thanks.