You guys are both still missing the point that the MM timer is only 1ms and its sometimes not even that. That is the frequency with which Sonar goes to look at what the midi interface has collected. Regardless of what you have set your PPQN to, You're never ever going to get better than that..which means 1ms quantization effectively. That results in a kind of jitter. And that very action of going to look at the midi buffer is EXPENSIVE. The main reason for suggesting to use a lower PPQN is to reduce the overhead. If Sonar is not going to look at the midi buffer less often, then there is no point in lowering it. However, if lowering it does have some impact, then there may be a case for it.
Bottom line, however, is that nothing you think you are doing with your setups is giving you true 960PPQN midi recording from your midi input port. At best its maybe half that. And its probably not that good either. 960PPQN on windows is mostly marketing.
Anyway, I'm unsubscribing from this thread because I feel like I'm beating my head against a wall. The only final comment I can make is to use your ears, do what works for you and have fun. I hope cakewalk will investigate the fact that the PRV is not representing what is actually playing back, that is a bug IMHO.