OK, lots to respond to (but with a happy ending)...
Hard Drive specs:
All of Sonar is on my C: drive, and my EWSO library is on the F: drive, which is a different physical drive. C: is a standard 400 Gb drive, but only has 22 Gb free. F: is an external drive, called a FreeAgent GoFlex drive, 1TB, 248Gb free. Other than Sonar and PLAY, I don't really use any other soft synths. I have a rack mount synth I use frequently, but it's an external box. Except for Voxengo SPAN and random rare exceptions, I don't use any effects that didn't come with Sonar. I also use Adobe Audition on here, but my workflow is such that they are never running at the same time. I am usually only messing with a single wav file in Audition.
This has been my music workstation for a few years, and while at first I recall having these dropout problems, at some point I solved them or they went away. That was mostly in 2012 when I did my first album, using 8.5. I did a few smaller projects in 2013 and don't remember any problems. Then I upgraded to X3 at the beginning of 2014 and am just starting in on a new album. I try not to use this computer for anything other than Sonar projects, but Sibelius, Zune and iTunes are on here too. Occasionally I will be running Sonar while Zune or iTunes is open, but I've never noticed any performance issues when they were open.
Like you, I have wondered also why someone would try to put a whole bunch of instruments into a single instance of Play. I've never done that. I have the Symphonic Orchestra Gold collection and added the Close Mic library.
I have also never used fast bounce to audio, because they aren't kidding in that paragraph you pasted; using fast bounce never works for any instrument ever. I fold laundry while bouncing my tracks to audio.
Most of the instruments use both the regular "stage mic" and the "close mic" samples, which I can mix with sliders. Hey...... it just occurred to me that I might be needlessly doubling the samples in memory for many instruments, as I usually mix my instruments to be about 90% close mic. Let me go right now and see what happens when I remove a bunch of stage mic samples which barely register anyway and use ONLY close mic. One moment while I try this....
....EUREKA!!! That made a big difference! Of my 20 or so instruments, I removed the Stage Mic samples from all but 3-4 of them, and suddenly things are a lot smoother. And the piece sounds basically exactly the same (minus dropout, of course!). Still occasional dropouts, but they aren't anything I can't deal with, and playing a section a second time makes the dropouts go away (which I don't understand, but whatever). WOO HOOOOO!!!!!!
I had also unchecked the Overload setting in Play per the suggestion you pasted here, but when I turned it back on after removing Stage Mic samples, it didn't seem to make any difference.
Another thing I do is load all the keyswitch possibilities for every instruments, to keep the creative flow as clean as possible. I don't like to pre-determine what kinds of attack I might need on a string section beforehand, for example. I know I'm loading a lot into memory I don't use, but I don't want to part with that flexibility. I will definitely look into the Purge though if I start getting more dropouts and crackles than I like. That play documentation section 5 is very useful, and while I know I'm doing things that push the limits, now I know where to go to troubleshoot it.
So, I think we're done here! Thanks Bob for all your tireless help on this, you really helped me a HUGE amount. I've added you to my thank you list in my Grammy acceptance speech :-).
One other issue: My orchestrations aren't nearly as good as I thought they were when I decided to re-open this project. What was I thinking? Clearing all the technical issues out of the way is now forcing me to face the REAL work. Damn you...