I have an audio clip that is 1 minute long At the end of that clip, I paste another clip at the 1:10 mark Then I slide the 2nd clip from 1:10 to 1:05 The first clip truncates in to 0:54 I can then go back and drag the end of clip 1 back out but I dont want the dragging of one clip to affect the length of any other clips. What is this "feature" called? How do I turn it off What use would it be? Thanks.

Haven't used Sonar 8 in a while, but when you paste, there are some options (maybe you need to Paste Special or select advanced on the paste), one makes a hole for the pasted clip, one merges the clips. I don't have 8 installed so I can't check. 

Right. It's in the Drag and Drop Options.
By default, a dialog box opens when you move a clip, but you may have turned that off.
If you don't see the box, right click on the clip, scroll down to the >>> at the bottom of the list, and select Drag and Drop Options.
Make sure Slide Over Old to Make Room is not selected.
If you select either the Blend or Replace option, the old clip does not move.
You may want to turn on track layers to get a better view of where your clips are, instead of having them stacked up.

You can also try locking the earlier clip so that it's impervious to change.

It looks like I have all the correct settings on the paste. look at my video below. http://www.youtube.com/watch?v=xrHuVZAhjzI

Bump... Anyone have this issue I am showing in that video clip? It still irritates me daily

Hi there, I have encountered the same problem regarding the truncation of clips when moving them close to each other... I was wondering if you found any solution to it?
Thanks

Has anyone tried what I suggested in post #4?

Obviously not, This is such a simple day to day function that I'm sure you'll "get it" if you follow the above advise and read the instructions. 
Another option I use is Groove clips. hint- Your right click is your best friend. 

Ok the lock clip worked but explain to me the behavior. What purpose does it serve to truncate clip b when pasting clip a. Who would want that? Why do I need to take the extra step of locking the clip.