I am able to see that X3 Producer is receiving MIDI data from my controller, and I can play VST instruments from my MIDI keyboard, but no MIDI data is being recorded. I have made sure that I have armed the track for recording. Can someone point me in the right direction?

You don't give much information about what your doing, so I'll just have to say the same old routine.
 
Insert a MIDI track
Set it's input to receive your midi controller on omni
Point the track output to a soft synth
Highlight the tracks record button - Hit record/R

I have followed your directions perfectly.....in other projects I am able to record midi just fine. With this particular project for some reason the midi data is not being recorded to the track. So strange...I've got the axiom 49 as the controller, I am getting signal on the track meter and I can hear my soft synth sounds, but when I arm the track for recording and hit record, no midi data is recorded to the track....not sure what other information I can provide. I'm using windows 7 pro, latest x3 version/release of sonar. 

You can arm the MIDI track and you can hear the sounds, but that doesn't mean the track you armed is set up correctly to received and record the MIDI data.
 
So you will need to check your routings for the tracks that are associated with that soft synth. Make sure all routing is correct as this is your problem
 
CJ

Punch range enabled somewhere later in the project?
 
 

Punch range enabled somewhere later in the project?
 
Good one, that gets me every time, but I immediately know whats wrong. 
 

Yeah, easy to see when it's you, but easy to miss when it's someone else. 
 
I'm thinking we need an FR to make all record arming buttons look like the Punch icon when it's enabled.

That must be where im falling short....when you say "routing" does that mean the track I/o?

Yes - he is referring to making sure the audio and midi track inputs and outputs are set properly.
 
Midi Track: Input - leave as Omni/None Output: set to your desired Soft Synth.  IF you want the output to be recorded to a specific midi channel, then set that in the Midi Output Channel drop down, which is immediately under the FX Bin for the midi track.  Make sure your associated soft synth is set to the same midi channel (if you set one in the Midi Output Channel drop down), otherwise, Sonar will just use midi channel 1, by default, which is fine for most situations.
 
Audio Track: Input: Set this to pick up the OUTPUT from your associated soft synth.  Output: set to either Master or some other Bus - I do NOT recommend sending directly to audio interface outputs - use a bus or master.
 
Bob Bone
 

So, in order to record midi data, you must have a MIDI track outputting to an audio track? Which track do you arm to record the midi data, the audio track or the midi track? In some of my other projects I was able to record midi data with just one MIDI track and no audio tracks. MIDI is a weak point of mine, as you can see....thanks for working with me guys...