It is a shame that Sony still has not made it possible to do a direct hi speed transfer via USB from Mini disk back to a PC. Letters have been written by the thousands. Because it is a dead format there is no desire to even make a hack of the protection codes.
The request is that only analog source recordings be made transferable.
I still use mini disk as a back up when I do live PC recordings and this means I have to transfer in real time anything I needed. Thank goodness this has been a rare case.
A little bit of reading about what is actually output from the digital cable had me pondering the fact that there can be a few clock and bit rate formats depending on the recorder and the ATRAC system used. A CD player is easy, it's always 44.1 / 16, but Mini Disk is a different animal.
I think it might be best to record directly to a wave editor like Wave Lab, Sound Forge or Audacity which is what I have always done. Sonar might not like a odd ball clock/bit rate.
I have never had to do anything special, I hook the optical cable into the SB Audigy TOS input and then select that as the recording source in the Audigy's mixer GUI. Wave Lab would record it as a 44.1/16 bit wave which is what my deck must output digitally. Sony MDS JD 530
Thanks for posting the picture and I see that you might have to also select the digital source on the interface. If there is a GUI ( software) mixer for the interface you will possibly have to set that too.
As my interface uses SPDIF , I'm not sure how a TOS link digital in shows in Sonar, must be the same. The only difference in the data is that SPDIF cannot transfer the Serial copy protection but TOS Link does,,, that's why Sony used it.