Uh - FYI, you are actually not allowed to transfer a product license to another person, per the licensing terms.
1. If the settings you listed are used when you are doing recording, then your ASIO Buffer Size is WAY too high. The ASIO Buffer Size for recording should be set somewhere around 128, as a reasonable balance. (you can adjust it, but if it is too high or too low, you can experience dropouts and such - 128 is a good starting point).
Please note that I mention 'during recording' for the setting recommendation of 128, because your latency needs to be low enough to allow tracking (recording) without any 'lag' between when you play a note and when you hear it back.
When you are all finished and move on to mixing and mastering, your ASIO Buffer Size will need to be set much higher (perhaps to that 1024 value), so that mixing/master plugins can be used. They require a much larger buffer to do things like 'look-ahead' processing, where they scan ahead of what is playing, in order to apply their particular effects. This holds true for effects such as Perfect Space, LP-64 EQ, and Boost 11.
2. The Sonar-reported Total Roundtrip Latency is displayed in Edit>Preferences>AUdio>Driver Settings, along with some input and output latency values. You want to try to get things adjusted to where your Total Roundtrip Latency value is down to around 10 milliseconds, or just under that. The combination of a Sample Rate of either 48 k, an ASIO Buffer Size of 128, and a Record Bit-Depth of 24 bits should get you down around that 10 ms target. Those settings are what I run, and my Total Roundtrip Latency runs at a little less than 10 ms. I have ZERO dropouts and no crackles with those settings.
You report using a Sample Rate of 44.1 k, which is also fine, ASIO Driver Mode, and a record bit-depth of 16 bits, so if you set your ASIO Buffer Size to 128, you should actually end up with an even lower Total Roundtrip Latency value reported by Sonar, and with that low of a latency, that should go a LONG way to getting rid of noise and dropouts during recording. You might even be able to drop your ASIO Buffer Size down to 64, but I would suggest leaving it at 128 for recording - it should be smooth sailing. You might also might be able to increase your record bit-depth to 24-bits and still hit that 10 ms target on latency.
I would urge you to try those settings in a new project, and I suggest running lean on effects at first, so that you can just test out the basic recording/playback without complicating things - and make sure you are getting a nice clean sound, with no dropouts or noise.
Bob Bone