Sounds like a botched install to me.
Semicide, I suggest you power down your computer and then reinitialize your system. Next, take all of your Sonar X1 Producer punch cards, check carefully to be sure they are in the correct order and then reload them into your card reader. Check to be sure that card 12,398 of 24,546,980 (assuming you have the X1c update cards in hand) has the command READSYS SET(Audio=ON, VOL=11).
Always works for me.