Ya, I have Sonar 7 and yes you can have separate Project folders for individual songs so to say.
Well, almost right. You highlighted the part of the track for the song, make additional tracks to cover how many tracks you highlighted in total - so if you had 8 tracks for a song, you make 8 new tracks and set up the pans and volume exactly like the original tracks or change them if you want I suppose. You split the track (one at a time perhaps - maybe all 8 - I did it with one just to try it) and you copy the track, when you use Edit menu option to Paste the highlighted part of the track, you use the Advance Options on Paste and put it on the new empty track starting at that location (can do all 8 tracks at once if you copy all of them in Copy Edit Menu option.
Now when exporting, and you have the one song and listened to it and muted all the other tracks when you export you have Source Category - on left hand side of saving like as a Wave file (*.Wav file) and in that you select - Tracks - then you mark which tracks you want to Export into whatever you want to name the file and Export.
Let me check to make sure. Yes, Sonar will automatically mark all the tracks to export. You have to take off the highlights of all the tracks, highlight the tracks you want (and make sure to mark at least one or Sonar 7 will leave the first track in the list of tracks highlighted, but you highlight one of the tracks at least to start off, then unmark the first track and and highlight the rest of the tracks wanted, then Sonar 7 will only export the tracks that were highlighted.
So, copy the highlighted parts of the tracks, and Paste to new tracks using Advanced Options (do not link to original clips) (do not blend with original clips - but overwrite new from old (nothing in those empty tracks though so you do not want them associated with the original clips) and where you want to Paste them (starting measure - can always be one and Track number to start on - so if new empty tracks start at track 25 - then you start pasting all the tracks starting with Track 25 on up to say with 8 tracks - Track 33 if I can figure correctly, mark them for Export by selecting in Source Category - Tracks and export to wave file whatever kind of file you want.
If you want then after Export and all those tracks are still there, you can Undo all you did, and select the next portion of the tracks by Edit Start Here - End Here - Now Times, and copy and paste to the new tracks again, check the Pans and the Volume (gains) and anything to make sure it is all the same and the Output of each track - say Master and do the same thing over again on the Export selecting the Tracks you want to Export.
Undo again until you have the original tracks you started out with, mark the next song via Edit Menu Options, repeat and rinse, and name all the songs differently of course and you will have all the songs separate.
If you want to work further into any of that, then make new Projects for each song, and Import the Wave files back into Sonar if any additional work is to be done. All songs will be separated, new Project folders for each song, and then whatever you do that all will be Separated and done.
If this does not quite make any sense, think about it, and look at what you are Exporting by highlighting the tracks you pasted to and only those for Export.