Thanks again for the feedback.  My original snap to grid problem fixed itself - it works fine now for all my projects - not sure why, but I am not complaining.  I should go back and check to see if I had clicked the infamous "Absolute Time Snap" button, as AllenDS mentioned.

Greg

Allen,

Many many thanks for this post! I thought I'd lost my mind and my project when this button was activated. Your post got me out of the ditch. I hope it helps others.
 
--Paul
...
 The solution was that I didn't realize I had accidentally activated the "Absolute Time Snap" button under the "Musical Time Snap" button.  I mistakenly believed that it was normal for it to be turned on when "Snap To Grid" is activated, when in fact I was trying to use only the Musical Time Snap option. 
...

Hi.
 
I noticed exactly the same thing in my copy of Sonar Professional and the Track view.
 
I tested it in the PRV and the notes there initially did not snap to grid either. 
 
In the end, after an hour or so of frustration and mucking about, I did a right-click on the snap button at the bottom of the snap pane in the menu bar and selected the 'Smart Grid' option. This put a circle inside the blue 'Snap' icon and changed the note value of the snap button to 1/16. I amended the note value to 1/8 and tested the snap again in Track View - it then snapped as expected.
I tried it in PRV and it also snapped.
 
From that point on it continued to work exactly as expected / needed.
 
I'm not sure if this is a bug or not, but its certainly one to look out for.
 
Hope this helps - Graham.