The mp3 encoder that comes with Sonar needs to be purchased separately from them... I think it's something like $10 but i don't recall...
If you had it working with a previous version of Sonar, contact cutomer support to re-authorize it...
You can use a free encoder such as lame and if you search the forum you will find very explicit instructions on how to install it..
Vst use requires running the vst scanner which you can find in the tools menu i believe (plugin manager) and you must make sure to add any paths your plugins are installed in if not installed in the program files/cakewalk/vstplugins folder...
How does your contoller connect to your machine? Have you selected it in Sonar Prefernces?
Keni