Thank you all for the replies. FYI, our goal here was to be able to have a small and portable multi-channel interface (the iO2 Express has two) that we could move around with SONAR on my laptop and record bits and pieces of projects. This interface was recommended to me by a friend who uses the same interface with Cubase (I don't use Cubase...). But given that I use Sonar.... and Alesis advertised this as "compatible with all major DAW's..." I was encouraged. This is for our church in our worship ministries (I am one of the worship leaders) so price was a big concern (the iO2 Express is $70-$90) depending on where you buy it.
I will go into the sample rates and check that they are the same as the native Windows rates that the iO2 Express is requiring. Since we already have this interface in-hand and really needed to get a project out by tonight we'll try and make it work. (although we do have other way to get that project done BTW - so it's not a major deal if I don't figure this out today, just would be nice as we master everything in SONAR). But it does sound like maybe the iO2 Express was not a good choice, if we are dedicated to the idea of using SONAR with it (which IS the case).
Again, thanks so much for the helpful replies. So much appreciated.
This is off-topic, but if you guys have a recommendation for a multi-channel USB interface that SONAR is more compatible with, that isn't hugely expensive, we'd love to know your thoughts. We can easily return the iO2. We just received it yesterday and have already hit these walls with it... We need a minimum of 2 channels, small form factor, would like it to be USB-powered and have on-board controls for input levels and have its own headphone monitoring.