In migrating to Sonar X2, I've been having trouble getting used to the new method of dragging clips in smart mode, namely I can't hold over any portion of the clip, click and drag anymore, it HAS to be held over the thin title bar of each clip and then proceeded to be clicked and dragged. Is there any way of turning this back to the legacy mode of just clicking and dragging any part of a clip?

No. You must click the "header" to drag clips
 
Clicking anywhere other than in the header creates a "selection", useful for editing/adding envelopes/splitting etc.

Actually... I believe there's a preference that allows for the pre-X2 selection behavior.   Not that I can remember what it's called, of course.
 
 
Edit: OK, I think this is actually what I was referring to:
http://www.cakewalk.com/Documentation/default.aspx?Doc=SONAR X2&Lang=EN&Req=Arranging.12.html#1710218
 
(grab and copy the whole link if it's cut short the way it's previewing at the moment)

Wow, I'll try that, if this works I really appreciate your help!!

You're welcome!   Hopefully it will do what you needed.
 

Good spot Steve.
 
You do still have to click in the upper 50% of the clip, clicking in the lower half still only selects data

That's perfect! Just as a minor niggle, is it possible to have the lower half of the clip the selectable area ala Sonar X1 rather than the top? It's mainly cause it's what I'm used to, but this is just what I needed to fix it, thanks again!

I'm fairly sure that isn't configurable, but I've been wrong before......

Hmm...   I'm not in front of SONAR at the moment, but Jonesey might be correct - I'm not sure there's a way to reverse the region vs. clip selection areas in a maximized clip to match X1.   I personally prefer the X2 method, but personal preferences are nice to have.
 

Maybe try the Move Tool instead? You'd have to obviously switch back and forth between tools but IIRC there is a keybinding that allows you to switch to the last tool selected momentarily (or something like that) and then when you release it returns to the current tool. If it works I can take a look at my notes to find that function.