This is weird, Using X3C Studio and  I am editing voice overs on karaoke tracks and Melodyne will cause audio dropouts when I create a region FX
 
What am I doing wrong?
 

Melodyne works by looking at all data in the Region FX data at once, so is best to create them with the playback transport not running (and save between different regions you edit).
 
If you are hearing dropouts when editing in Melodyne try bumping up your audio buffer (Preferences->Audio->Driver Settings->ASIO Panel) or if in WDM mode the "Buffer Size" slider. Melodyne recommends "1024 samples," but I have used it with much less adequately.
 
And potentially, the I/O buffers (Advanced Mode: Preferences->Audio->Synch and Caching). A value ~512 seems to be best just in case they are far from that value.

Ok so  have set my buffer at 512 still getting dropout.
When I wish to edit a portion of the recording I stop playback , then I select the area in the take lane I wish to edit with Melodyne.
Then I go to (Region FX->Melodyne->Create Region FX) So a window opens saying this....
 
DirectShow Error (0x8004022A)
This filter does not support the current audio format. It may require a different number of channels (eg. stereo instead of mono), or a different sample rate.
 
What does that mean exactly and what do I need to do to address this problem ?
 
following this after I click the ok button it shows DROP OUT beside the track time and I have to close X3C Studio and restart the program to be able to restart my audio engine
 
??????

I am not sure what is the root cause of that specific error. If you close X3 and open Melodyne in stand-alone mode, navigate to that project's audio folder and see if you can open a vocal track in Melodyne or if you get that error again.
 
Edit: Researching that specific error, it seems it may occur due to not having proper codec files, so may potentially be an installation issue with Melodyne. Melodyne has been pretty slick in that I default it to ASIO, but if I have my interface turned off, it will launch in DirectX mode.
 
Celemony responds pretty quickly to emails, so it is worth sending an email to them. http://www.celemony.com/cms/index.php?id=contact  (info AT celemony DOT com)

It works as a  stand alone as long as I can get to create a region fx of the desired section I wish to edit
 
Playing with it here I have discovered that changing my selected area to stereo will allow me to create the region fx I want but will cause a drop out therefore I need to close and restart X3 in order to access the region FX double click it and opens the editor that I can work with ..
 
 

Maybe an adjustment to the AUD.ini variable DropoutMsec (say 500 or 750) would help. Info about the variable here: http://www.cakewalk.com/Documentation/default.aspx?Doc=SONAR%20X3&Lang=EN&Req=INI_Files.6.html#1134652

Well that does not work eitherI tried 500 , 750 and 1000 no improvements
 
Funny thing here I have found it works fine on another track I have recorded that same evening but only that one
All other tracks give me the same issue for all 3 different dates recording with exact same equipment
 
Any other thoughts ?
 

Same issue with me tonight on one project.  Like clockwork I tried the usual tricks like bouncing a track even though it doesn't need it first.  I will see what I can do.
Open project go to audio track right click region effect-> melodyne
audio dropout
have to close and restart sonar as audio does not return like it normally does by just hitting play.
 
 
 
FYI Melodyne says literally on the sonar training page I saw just yesterday they recommend 1024 buffer size.

OK  I had one clip with a live melodyne region FX applied to it, rendered that, comped down about 4 multitake vocal tracks to one take lane deleted the others. and turned off the FX bin on several harmony tracks and I think this may have been the resource hog killing it.  Ozone 7 I had a few tracks and the master bus.  I turned off my FX on the master bus.  saved the project rebooted and now I am happily using melodyne of clips using region FX without the dreaded "audio dropped out message" and having to restart sonar.