Dean,
Thanks for the response. Essentially, I've been trying to do method number one, but expecting to have results similar to method two, which is probably where the confusion is occurring. There is no output level or mix control on the external reverb, so I would have to mix the wet and dry signal inside Sonar (as you suggest in method 2) and I guess I was expecting all the signals to show up on the same track.
So, just to clarify, I would create a separate bus in Sonar. I would select the Output of the track I want to effect to be set to this new bus. I would add the External Insert to this new bus and then control the level of the wet signal there and the dry signal would be the output level of the original track? Also, I notice on buses that there's only a single input/output choice...not one for each. What would I set it to? Also, how do the send return levels in the External Insert fit into the signal flow? I guess I originally assumed that's where I would control the wet/dry mix, but I guess not.
Hopefully these questions make sense....
Bob