I have had the problems of static, popping, skipping and low volume while recording since the beginning and have tried various preference settings to no avail.  These problems apply to both playback and recording.  I hope I included the appropriate info in my signature.  Thank you.
 

Run the DPCLAT test to make sure your laptop is not running applications in the background that can cause this to happen. 
 
http://www.thesycon.de/deu/latency_check.shtml

Please list - From your audio interface: Sample Rate, ASIO Buffer Size.  From Sonar: Total Roundtrip Latency.
 
I suggest trying settings of: Sample Rate 48 k, ASIO Buffer Size 128.  
 
Also, test the above in a project with NO effects loaded, just for testing.
 
Please run a test with a new project and the above settings, leaving Driver Mode as ASIO, and record bit-depth of 24 bits.
 
Bob Bone
 

Robert - Cakewalk Sample Rate 44.1, ASIO buffer size unknown.
Sonar - 24.1 msec, 1062 Samples.
You may be on to something with your suggestion of Sample Rate 48 k, ASIO Buffer Size 128.
These setting eliminated the cracking and popping and static however they also caused the audio engine to stop running. 

Also... Static and popping eliminated but skipping increased.

Cactus, I ran the DPCLAT test with this result:
This machine should be able to handle real-time streaming of audio and/or video data without drop-outs.
Absolute Maximum 1153

"Popping and clicking" are usually related to dropouts.
 
The low volume recording is another issue. The recording "volume" (saturation) is determined entirely by the settings on your audio interface, and has nothing to do with Sonar. If the interface settings are at the maximum and you are still getting low levels in Sonar, then there may be a problem with the interface or the microphone or with matching the microphone or attached instrument to the interface. I know this sounds stupid but, if you have a microphone that requires phantom power make sure that power is on. Make sure that you have the connected instrument or microphones set appropriately to High Z or Lo Z.
 
I am not a microphone expert or familiar with your interface, but if you will post your entire setup i.e. exactly what devices you have connected to what inputs someone here can probably help.

ASIO Buffer Size is from your audio interface.  It is sometimes expressed in terms like 'number of samples' or may be a slider value.
 
You want to end up with a Total Roundtrip Latency at around 10 milliseconds, or just under that value.  That value is reported in Sonar Preferences>Audio>Driver Settings.
 
IF your laptop has a Wi-Fi adapter, this could be part of the problem.  Most folks with laptops find that they have to temporarily disable their Wi-Fi adapters right before launching Sonar, then they enable them again right after completing their Sonar session.
 
So, PLEASE provide your Total Roundtrip Latency value, your ASIO Biffer Size (or whatever your interface calls it), and disable your Wi-Fi adapter, if present, then post back.
 
Bob Bone