Thanks for all the help all. I got it working by selecting all tracks then highlighting the 3 measure section at the top of the time ruler, then opening edit, cut special, and clicking delete hole... and voila. The problem was that there was no notes or midi in the space, once I put in some sound into the space it worked... so thanks for that suggestion JB.
P.S. Kalle, I know it's hard to resist mocking those on the forum who appear naive, but some of us are smarter than we seem, the explanation in sonar help does not seem to apply to blank spaces... i.e. its too vague... so I asked the forum and I got great answers... well, except for yours.
Cheers