Update: Confirmed w Tech Support that this is indeed an "issue/bug". Although it took me a while to get them to recognize that it isn't working the way it should. Problem report has been logged.  Workaround is to hold down F8 while using the Smart Tool and it allows you to do the slip edit.  Note that this only happens at the beginning of clips, where there's also a Fade In and you're zoomed out a bit.  It's a pain when you're trying to slip edit clips across multiple tracks at once and want to visually see the edits taking place.
 
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I was trying to slip edit an audio clip with the smart tool, but all I could do was adjust Clip Fade time. When I would hold the pointer at the dege of the clip (hot spot) all I would get was the damn adjust fade tool.  

There are some weird things with clip fades, but for you the solution may just be finding the "hot spot" for the tool. Aim in the lower half to mid height area of the clip's edge to get the Slip icon to appear, vs. the clip fade icon.

Thanks Wicked, but I did.  I went all the way up and down the edge of the clip and all I would get was the Clip Fade option.  It was driving me insane!!!! Then, all of a sudden, it was there.  I hit alt, then ****, a few times to see what would happen.  When I would hit Alt, I would get the Split tool.  I think I'm missing something here.

Now it's happenning again!!! I think I figured it out.  When there's a fade in on a clip, and the fade doesn't go very "deep" into the clip, the program can't seem to be able to switch between Fade and Slip.  I have to Zoom in a lot into the clip to be able to Slip edit.  Very annoying, never had this problem with previous versions of Sonar before. Only happens at the beginning of a clip where there's also a Fade in.  It doesn't happen at the end of clips even if there's a Fade out.

Can anyone else replicate this with a file? Thanks!

Bump!

Can anyone else replicate this with a file?

Yes, this happens to me a lot. It is very frustrating.

Note that when there is a fade on a clip, you can either slip edit with the fade staying a constant length, or slip edit with the fade adjusting length as you go. Which of these two types of slip edit you get depends on where you drag from. The top three quarters of the clip edge gives the first behavior, the bottom quarter gives the second behavior. There is a little blue tick mark along the blue edge to indicate where this changes.

This might be what you are seeing?

Cheers, Peter.

Thanks Peter, but I'm aware of what you're saying and this isn't what's happening.  What's happening is that the Hot Spot at the beginning of the clip ( the area that turns blue when you put the cursor on it and allows you to chose the type of edit you want to do ---Hot Spot C as described on page 404 of the manual)  is not available if there's a fade in  unless you really zoom in into the clip, which makes it tedious to edit.   The only option is the adjust fade option which turns the area red.  I've never seen this behavior before when slip editing in previous versions of Sonar and it only happens with the "Smart" tool.  I couldn't post a screenshot so I just pasted what the manual says below:

Using the Smart tool on audio clips

Hotspot Default action +ALT +CTRL +ALT+SHIFT

A Adjust fade in

B Adjust fade out

C Crop clip start Crop clip start and

move fade in

Stretch clip Crop clip start and also

move clip data

D Crop clip end Crop clip end and move

fade out

Stretch clip Crop clip end and also

move clip data

E Lasso select entire clips Select by time

Table 67. Using the Smart tool on audio clips

OK, I understand. I can't get this to happen. It seems to work as advertised for me.

Can you get it to happen if you start a new project using the normal template, record a dummy audio track for 4 bars or so, add a fade out and then try to slip edit? Just wondering if it's a particular project or a more general problem.

Cheers, Peter.