Never did resolve the panning issue.  All evidence points to my Interface but this thread kind of ran off into my other problem of CPU spiking and I wanted to post back about the spiking in case anyone else having this problem still.

Okay, I thought I had this solved before and it was not.  Hopefully this time it is!
Even though I had run numerous benchmarks on every piece of hardware in my tower.
There was nothing to extreme on the CPU temp, but thought it still may be an issue.
Cleaned everything up and put a better fan on my CPU.  It helped but I soon noticed the spiking again.
I swear I have already been through every option in Sonar at least a dozen times.  
I turned off Read and Write Caching and the problem seems to be gone.

OK could you please try this.
 
1) Please update your footer with your hardware and software specs like mine. Always good to know what your gear and software  is at all times.
2) Please run windows update several times.
3) Please do this : http://forum.cakewalk.com/Driver-Boost-m2928792.aspx
4) So you are running Focusrite Saffire? You are running mix control 3.3? http://uk.focusrite.com/downloads?product=Saffire+PRO+40
5) If you are running on the legacy firewire driver, there is no need to do this now (with 3.3).
6) Install Sonar X3D patch.
 
Once you've done this could you please recap your current issues, and check the windows event viewer for issues.
 You might also want to try renaming your AUD.INI file to see if this helps as well...
 
Once you've done all this, you've almost blanket bombed (and ruled out) most common scenarios however odd this may seem.

Scook - Sorry, I guess I didn't your post last time.  To answer your question, no I have only used the Scarlett 2i2.
I never did bother to hook it up to a different laptop/pc.  It is definitely NOT the "O" key, or Offset mode.
I am convinced it's the interface.

Alex - You have a point about the footer.  I guess it's actually kind of ignorant to ask for help and not have that info available.  I don't mind when other ppl do it but, I don't want all that crap at the bottom of everything I say.  Will be sure to post a more thorough description of my rig next time I ask for help though.
But I am pretty much done with the Pan issue. I've tried it on different DAWs.  
I might try the driver boost thing.  But I generally stay away from those type of apps.
Will also try the AUD.ini file.
I'm using Scarlett 2i2.  It doesn't support Mix Control.  And no firewire.
I was mainly posting back because my other CPU Spike issue seems to be resolved.  
I had to turn off Read/Write Caching.  

Thanks again everyone.  Will post back when I find something definite about the panning issue.

I never mentioned offset mode but I did suggest and do believe that you could get a faster answer by calling Cakewalk tech support.

>  I don't want all that crap at the bottom of everything I say.
 
Fair enough, but it's really useful for us. When people come into the forums and start having similar symptoms we can see the similarities straight away. It also saves us time searching through a thread and allows us to always think about your particular system every time we respond. Finally a forum member might recognise a known issue with particular hardware and bingo just by reading your footer. Cheers...
 
> But I generally stay away from those type of apps.
Same here, this was the exception though, I understand the reluctance, just be careful how you install it and all will be fine. This will at least be a good way of auditing your PC, you can choose to have drivers installed automatically, or go and get any outstanding drivers yourself if you so wish.
 
So you are on Focusrite USB 2 Driver-2.4 I assume: http://uk.focusrite.com/d...s?product=Scarlett+2i2
 
And windows update :) Often there are USB fixes for instance (not that it should solve your particular issue).