Thanks for the good ideas and feedback above. I have 12GB RAM. I don't believe this is about DRM. I've never seen any evidence or had any DRM problems with Amazon MP3s, looking at file tags does not show DRM protrection, and I understand Amazon MP3's are supposed to be DRM-free.
My opinion is that since the MP3's work flawlessly in other programs, and can be opened by other editors, tag programs, etc. ... then they should also work in Sonar, without requiring the user to do any conversions or data stripping.
Obviously others have had this problem, but I did expect to see even more users having it. So there may be something in certain configs that Sonar is not handling very well.
I still believe it's a Sonar problem. It could be many things. One idea is memory handling which throws an invalid out of memory error.