Ok I got it to work,..
I started the rtpMIDI tool first on Windows Notebook, then on iPhone started the AC-7 core Mini app. I noticed then in the rtpMIDI tool my iPhone appeared in the list, (seems Apple Bonjour found the service for me). I clicked the connect option in the app. It moved the listing to the connected.
ie:

Uploaded with
ImageShack.us Started up Sonar and jit "P" configured the control surface to use Mackie Control and in the ports the host name configured in the rtpMIDI was already selected in the I/o ports.
Saved and tried it out... It still wasn't working. Found someone mentioned had to hit reset in the iPhone app. Tried this and still didn;t work... Hmm frustrating time...
Now I remembered I had a similar problem with my Samson Graphite control surface, that is after I configured the Control Surface had to save and then exit from Sonar and start sonar up again. I quit out and restarted sonar and all works!!!
Now I can control my DAW from my iPhone - woohoo...