To reduce things to their simplest, I started a new project with just 1 midi track and did the "1 C scale" experiment.  Same result as previously.
 
 
 
I tried to paste a screen dump so you could see what I see but haven't done one before and can't figure out how to do it.

I suspect the issue is that Input Quantizing does not quantize durations - only start times. Duration quantizing, which you probably have enabled by default in your quantize dialog, is often needed to get notation to display as expected, though the Fill/Trim Durations options in the Staff View may help in some cases. The latter is preferable in terms of audible results, since duration quantizing can really take the life out of a live performance - much more so than quantizing start times. I usually make muted copies of tracks to quantize for notation display and printing purposes without affecting the sound of the live tracks.
 
 
 
 
 
 
 
 

This has been an interesting learning experience.  When I did this simple experiment and couldn't get the input quantization to function the way the Garrigus book said it should, I wondered what the actual note start times and durations were.  So I right clicked on the notes in the staff view and, instead of what I had been used to seeing in the "Time" box (measures/beats/ticks), the entries were the time values.  I searched around trying to figure out what I had done to change the time readings (without success) so I posted a new note to this forum.  Scott Garrigus came to the rescue and explained to go to preferences/display and uncheck the box marked "Display all times as SMPTE" which I did.  I then tried doing the simple scale thing again with the input quantization on and (TRUMPET FANFARE) it worked as advertised.  (Scott: did you realize that's how things work?  Put it in the next edition.  )

Hey Ken,
 
No, I didn't realize that option would affect notes that were processed with Input Quantize. As far as I know, it shouldn't. Sounds more like a bug... But I'm glad the problem is solved.
 
Scott

--
Scott R. Garrigus - http://garrigus.com - SONAR X2 Power! - http://garrigus.com/?SonarX2Power
* Author of the Cakewalk Sonar and Sony Sound Forge Power book series: http://garrigus.com/?PowerBooks
* Author of the Cakewalk Sonar ProAudioTutor video tutorial series: http://garrigus.com/?ProAudioTutor
* Publisher of the DigiFreq free music technology newsletter: http://digifreq.com/?DigiFreq
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Good one. Yes, sounds like a 'feature' that should be reported:
 
http://www.cakewalk.com/support/contact/problemreport.aspx