Hi Dan, thank you for help with this issue...
nope... this is not a tempo based effect and its not sync to the global tempo. it is an instrument loaded into Kontakt 5. (ver 5.1) There are however, 17cc automations lanes recorded with the midi track.
the original song was sequenced in Sonar X1d which did not exhibit this behaviour.
many thanks again for your help.
EDIT: i noticed that when the Track Emulators from the ProChannel are on, these pops and clicks will occur while moving the mouse (as mentioned above). if the Track Emulators are off and or deleted, playback will be smooth. (i have Track Emulators on every audio track (N-Type) and Track Emulators (A-Type) on buses.) thanks again.