+1 on removing ASIO4ALL, since you have an audio interface, which should have ASIO drivers of its own.
I recommend you switch your driver mode to ASIO, and point Sonar to use your audio interface. If ASIO4ALL was removed prior to switching to ASIO, then I believe Sonar will automatically find and assign your dedicated audio interface, if you click Apply after switching to ASIO driver mode.
I think you will find instantaneous relief from your latency issues, once you switch to your interface and ASIO.
I suggest settings as follows, as a reasonable starting point:
Audio interface: Sample Rate of either 44.1 k or 48 k, ASIO Buffer Size of 128
Sonar: Driver mode of ASIO, Sample Rate set to match what you set your interface to (44.1 k or 48 k), Record Bit-Depth of 24 bits.
In my opinion, you want to end up at or just under a total roundtrip latency in Sonar of 10 milliseconds. That number is a reasonable balance.
The above is predicated on your having previously installed your audio interface drivers, (sorry - had to mention that)
Hope that helps,
Bob Bone