@ Beepster- sorry I didn't write changing those settings. I've run audio streaming settings to where there is pop, and brought it down to no pop. Tried all ASIO buffer sizes and bit depths... all have (what it sounds like) they exact same latency issue. Looks like I need to call Cakewalk...

Okay. You might want to type up all your system specs and the problems you are having and email it to tech support before you call. Then give them the ticket number from your support email. Then they can pull it all up on their screen instead of having to tell it all to them over the phone. Just makes things easier all around. 

Good luck. They're good guys.

Side note... Still haven't got it to work right. I decided to reinstall podfarm to mess round. I now have the issue more isolated. When I used podfarm, no latency- but that was because I was monitoring the podfarm out. I turned that off and monitored the guitar/podfarm from sonar, and the exact same latency issue exists. The signal from the guitar/podfarm going in is ok, I am having problems monitoring the guitar from sonar without any latency. (and PS, the PDC button is not helping enough, it reduces some of the latency, but not enough to record in time).

For those of you that are interested, the problem is solved. I am using an (older) imported BUN file. I had tried using the FX button in previous attempts to correct. but it didn't work. Cakewalk support suggested bypassing effects bin for each track, and surprise, it works. Now the weird thing is I don't have any effects on these tracks, so that is a separate issue to resolve... but at least now I can record my mic straight into Sonar without using podfarm and without any latency issues... THANKS to all of you for taking the time to help me work through this. If I ever get famous (lol), I'll send you a backstage pass. :O

   Glad you somewhat have it figured out. I couldn't find anything wrong when using my UX2, but I guess I assumed you also didn't have anything else going on in Sonar either. 1 thing at a time is really the only way to trouble shoot something like this, considering the vast amount of third party plugins and instruments, let alone system configurations throwing something awry. 
   I still have no difference when recording through PF dry output and without PF dry, when everything in PF is disabled and I mean everything, gate and all. I listened through my Event 20/20 monitors and through a low priced pair of Sennheiser HD phones, so that's still kinda weird, but I guess every set up is different and I'm using the UX2's phantom power, which could be the difference.  Cool you got somewhere with your problem, good luck with the rest.