I do this quite often Dan,
I like to have plenty of time to setup and get the best sound I can on each track before I do anything.
I have used panels to kind of isolate mic'd amps, drums, etc... to try to minimize bleed (However bleed can be a good thing IMO).
As far as Sonar settings, I would have it set to where you can expect the least amount of problems with buffer sizes being you wont be needing any type of low latency for monitoring purposes.
Start with a blank template (No FX or plug-ins)
Once your happy with what your hearing that will be captured/tracked, save your project. I usually create a folder for The Band, then Title will usually be something like "MASTER, Band Name and Date, might be good to squeeze in Sample/Bit Rate in title as well.
Once the recording session is over-DO A "SAVE" and also a "SAVE AS-Working Copy" with the other title Info as well.
Then you can open the working copy and start with the assault of editing, mixing, .....
The first thing I like to do is get a general template made up of having all the FX, EQing, etc... in place for the most common type of songs that will hopefully apply to most of the session and get as good of mix as I can from that point.
Once you have that done, I like to add a "Marker" at the beginning of each song with the title.
This will make it easy when it comes to jumping to the beginning of each song to isolate/slip edit it down to the song itself.
Once all this is done, now you can do the SAVING.
I will take the set/song list in order and do a "Save As" for each song.
This will create identical projects with the exception of the Project Title.
--Open the first Song/Project,
--Lasso all track
--Zoom all the way out
--Grab the end of the clip and slip edit out until just the song remains.
--SAVE
Repeat for all song projects
You can delete the markers once that is done
Now you can go in a fine tweak each one, you have a Master Saved, a Working Master Saved, and Individual song Projects saved.
The Last thing I do after this is Burn a copy of the Master to DVD and put it away (THIS HAS SAVED ME!!!) even with 3 HDDs and all the other back ups.
It sounds like a bunch but it really isnt once you get your system down.