Yes something is not set up correctly.... I am just so happy to be able to work after being down for a few weeks that I haven't looked into it yet. See the thing is, nothing was loaded on the other end of that ethernet cable. I had Vienna Ensemble Pro loaded into the project, which connects to another computer via ethernet, but on the other computer zero samples were loaded it was just an empty plugin. So it's not the sample size but the plugin itself.
I actually have 7 external computers that do nothing but load samples. 6 of them communicate via Midi-Over-Lan and contain their own soundcards which sends the audio out to my mixers. I never have any issues with these computers, they are rock solid. But they are load-it-and-leave-it computers for me, I never touch them.
The 7th computer connects via Vienna Ensemble, which means all audio and midi is transported via ethernet and the audio is brought back into the main computer. It doesn't have it's own sound card. This is nice to have because any samples I load into that computer (Kontakt, Play, Omnisphere, etc) are saved and loaded with the sonar project and use zero memory on the host computer. Obviously something is not working though. And yes I used to run this way on 8.5 transparently. As I said all the strain of the samples is on the external computer. All Sonar is doing is sending midi and receiving audio. But there's more... because the external computer syncs to the main host tempo... and also loads and saves with the project... so that's where something is causing issues with X3...