UAD effects are presenting numerous issues in Sonar X3. Three that come up often are the "-21" error message when inserting a non-UAD plugin between two UAD plugins, a crash or other mischief when using UAD effects in ProChannel fX chains, and disabling of UAD plugins in Aux Sends at certain times. I have been trying to figure out what went wrong and what workarounds exist, if any.
At the moment, I think the only solid way to use UAD effects in Sonar X3 is to use no later than version 6.3 of the UAD software. Unfortunately this is still 32 bits, so it's necessary to either bridge to 64 bits or use X3 in 32 bits. UAD version 6.3.1 is the first update which offers "UAD plug-in chaining", which seems to have broken Sonar's implementation of UAD fx. One other workaround that may work for some issues is to uncheck "Always stream audio through FX" in Sonar preferences, and be sure never to add any plugin while the transport is running.
Cakewalk and UA have each stated that they will make changes to coming versions of their software to address the issues people are having. One can only hope that they communicate about their respective changes, so that the net result of both taking action will be a resolution, and not just a new set of problems.
Now I will speculate about what went wrong.
It seems to me that, in the absence of communication between the companies, Cakewalk continued to use the "custom chaining API" which they developed with UA, while UA changed their implementation of it without telling Cakewalk.
Around the time when X2 was released UA stopped "qualifying" as many hosts as it once did. At one point I believe the only qualified hosts were Nuendo/Cubase 6.5 and Pro Tools 10, or some such thing. So before that point, the UAD driver was actively looking for Sonar, and upon finding it took some steps to adapt to the so-called custom API. When Cakewalk released Sonar X2, UA still took steps to add a flag for it in the driver, but the relationship seems to have broken down completely since then. (UAD version 6.3.1 was released one month after Sonar X2.)
Why did Cakewalk and UA stop working together? That seems to be the question.
I think that UA may well have grown frustrated with Cakewalk, as there are other ways in which Sonar does not play nice with UAD effects. For example, the "true mono" issue - Sonar's implementation of mono is very different from Cubase's (Sonar essentially just uses the left channel of a stereo plugin, while Cubase uses a mono instance of the plugin), and this is why in Sonar one must use the mono versions of UAD effects on mono tracks, because stereo plugins more or less double the DSP resources needed. This "true mono" issue affects other plugins as well, although not as severely. Cakewalk seems reluctant to change this implementation (and I think in some ways the Sonar system is better). This and perhaps other issues may have eventually frustrated UA so that they gave up on Sonar - at one point (the same point in time when they changed their qualification standards) they even refused to provide mono dlls of their more recent effects; fortunately they relented on that point.
Moving forward, I think that if Cakewalk wants to provide a DAW which can incorporate UAD effects, without some change in the relationship, they will have to be more quickly reactive to changes in the UAD system in the future. I don't think it would be a bad idea to attempt to become a qualified host, but some sort of basic functionality at least seems necessary.
Frankly, I think UAD effects are not in the preeminent position they once were. For example, Native Instruments now has pretty decent emulations of many of the same machines UA is known for emulating. Still, I think that in order for Cakewalk to continue to market Sonar as a "pro" DAW - the top of its line of music software - they need to accommodate UA for the time being. One can only hope that UA will go native in a year or two, solving many of the problems it creates, though that seems unlikely.