Bapu,
 
I heard form support this morning and thought I'd paste this for you in case you wanted to try the steps as well:
 

Hi James,

Please note, all support queries are dealt with through this, our HelpDesk, any e-mail you may send to support@ are "noreply".

I've had no further tickets regarding this issue, so I would advise a clean install, and request your full system spec's and session settings, and steps to repro for further diagnostics please.

Please remove VBC components from your plug-in directories, clean registry with an app such as Piriform CCleaner (free on the web), deactivate and reactivate license in latest iLok License Manger, and run Sync/Repair on the key.  Reboot and then install VBC 1.1.0.10.

If you have issues still, I'll note our developers for review, and in the interim you may try older version 1.0.1.6 (noted last major release, stable!).  Note, nothing has changed regards the algorithm, so sound will be exactly the same through builds...

Well, I followed the above instructions exactly, but I have the exact same problems - even going back to 1.0.1.6 as they requested.
 
So far, things are not going well...

James,
 
I'm sure you'll find that 1.0.1.6 works for you. It did for me.
 
I just need to carve out the time to go backwards too.

Unfortunately, it did not work for me... :(

smallstonefan
Unfortunately, it did not work for me... :(

Hmmmmmmm.

James. 
 
I just tried some quick experimentation in 1.1.08 and I've concluded that there is a problem with the rack and/or chaining with other fx's.
 
If I load single compressor(s) on a track or bus Fx bin I do not get any problems. However if I load any single vbc compressor in an fx bin with another fx (non slate) I get the pops and then dead audio. 
 
When I load slate VBC singles in an FX bin it's no matter that it's VST2 or VST3. All is good.
 
When I chain vbc singles (non-rack) with non slate FX in the bin, vbc VST2 and VST3 no workie. 

Oh, forgot to mention. The chaining with non slate FXs only craps out when I do it to a real audio track, not on a soft synth track.
 

OK, this is weird.
 
I just loaded the rack on the Master Bus and I had no problems.
 
Same project that I was describing above.

Thanks for all of the info. I'm gonna wait until this all gets sorted out.
 
Rocky

So the plot thickens. Slate support asked me to install Reaper and try them there. They do NOT have the problem in Reaper; they work fine.
 
In Sonar, only the mu works...
 
?