Just in case you still might need it, see figure 180 on this page:
http://www.cakewalk.com/Documentation/default.aspx?Doc=SONAR%20X2&Lang=EN&Req=Inspectors.3.html
 

WOAAAAHHH... Holy wow. I mean I had been searching for well over a month before I posted, and then it's been 2 months since that post (and thanks so much to everyone that tried to help) but there it is. I never saw that Audio/Midi Tab in the bottom right...
 
Mind Blown.

 
I'm glad that helped!
 

polarbear - I agree with both BitFlipper and stevec in their polar opposite comments

BitFlipper - "simple instrument tracks are cursed kludges"

stevec - "flexibility is great, I personally use SITs most of the time"

I find many advantages to separate audio and midi tracks myself. The biggest reason is clarity. I don't particularly enjoy the SIT mash up. But flexibility is great, and whatever works for you that keeps you recording is good.

Oh yea. Having options is always best :-)