are you using default DSP?
If using default DSP - then you have RECORD levels and if your using an AC97 input - you have relative levels on the AC97 page as well. ALSO theres a 'ANALOG RECORDING GAIN'
Are you using GuitarRig or Amplitube as a guiter fx processor to be recorded?
If your using guitar rig or Ampliyube - definitly you should look into customizing your DSP config.
You may want to look into using a DSP config that removes most of the mixer controls which, while is a little complicated to set up, eliminates many of the recording/monitor gain stage confusions.
thomasbarnes' Sonar and ProFX setup guide found here is pretty easy to follow.
http://www.driverheaven.net/showthre...582#post806582
In his signature is a link to his guide... and hey, to show your appreciation, have a listen to his music while you're reading..
Hope that helps.