Ok so I contacted Cakewalk Technical Support. Or they contacted me I can't remember.
Here is what they told me:
.........................................................................................................
That mic should work fine in MME mode. Go to Options | Audio |
Advanced and put a check where it says Always use MME Interface (or
change the Driver Mode to MME). Close the program and re-open it. The
Wave Profiler should run tests. You should now have more devices
listed under MIDI Devices and Audio Drivers.
You may not be able to monitor that Mic while recording unless you use
MME drivers, unfortunately MME creates a delay or latency. If you are
able to use WDM and still get a delay when using (Input Echo or Input
Monitoring), check out this link for more info on decreasing latency:
http://www.cakewalk.com/tips/TechTipJuly02_1.asp A third option would be using ASIO4ALL drivers. You can try out
ASIO4ALL from
www.ASIO4ALL.com These drivers are a good solution for
generic or OEM sound cards that have unreliable WDM drivers and/or
nonexistent ASIO support. Once installed open SONAR and go to Options
| Audio | Advanced and change the Driver mode to ASIO. You may need to
go to Options | MIDI Devices and shut down the Microsoft GS Wavetable
Synth in order for this to work. Try using the input echo button on
your audio track.
....................................................................................................................
I'll try that out and then post how it went.