well, as I expected after a complete rebuild (including updating my MSI M/B BIOS in the process), full windows update, Sonar X3 install + all updates to X3d...still get the audio dropout.
Only difference now is that I get the green Sonar error (kinda looks like when it's doing the VST scan) but it says AUDIO DROPOUT error. After I clear that then the message I detailed in my original post shows up. Clicking NO lags it for a bit then the transport comes back and I'm able to record/play again.
For what it's worth the message that comes up is exactly the same message that pops up if I intentionally disconnect the FW cable from the FF800 or the PC. So, it seems something is happening somewhere. The fact that several of us seem to be experiencing this leads me to believe that we probably all don't have faulty FW cables or cards. :)
ARGH!!!!!!!!!!!!!!!