If you've done everything in the Help menu regarding Dropouts, there are only a few more things to try:

1) Delete the file AUD.INI from the Cakewalk folder, start Cakewalk, and let it analyze your hardware.

2) Go to Options | Audio | General and move the Latency slider toward the Safe setting.

3) Click on the Advanced tab and set the I/O Buffer Size to 256.

4) Open a file that has this problem and run the Tools | Compact Audio Data command.

5) Make sure nothing else is running while Cakewalk is open. Choose Start | Run and type MSCONFIG. Click OK, then click on the Startup tab at the upper right of the window that opens. Uncheck all items listed, click OK, then restart your computer. You can always recheck those items again at a later time.

6) If, and only if, you have an UltraDMA hard drive, make sure it's in DMA mode. Go to Control Panel | System | Device Manager and click the plus next to Disk Drives. Double click on your hard drive, click Settings, and make sure the DMA box is checked. If it is not, check it, restart, and make sure it stays checked.

7) Its not uncommon for a soundcard driver to become corrupt and therefore cause dropouts. Download and install the latest drivers from your soundcard manufacturer's website, or if you have the latest drivers, reinstall the ones that you have. Then, delete the files AUD.INI and TTSSEQ.INI located in your Cakewalk folder on your hard drive. Then, under Options | Midi Devices, make sure that Midi Mapper and any Wave/Soft synth is not selected. Instead, select the Midi Synth for the internal sounds or the Midi Out/MPU401 if you have an external midi device. Next, under Options | Audio | Drivers, only select your Soundcard wave in and out, do not select any voice modems or other drivers.