I have a Babyface, and this is how I set it up. Using RME drivers version 1.028 and Firmware of that version, 1.029 and firmware does not work the same and for me does not work at all for what I want. Version 1.028 does.
Pictures:
http://i46.tinypic.com/34evk09.jpg
http://i48.tinypic.com/2mm733o.jpg
http://i46.tinypic.com/2py4xo2.jpg
http://i46.tinypic.com/24157go.jpg
In Sonar 7 which I have (should be the same) I set Recording Master on Audio in Menu General Tab to Analog 1 (1&2) and set Playback Master to Analog 3 (3&4).
On Audio Tab Drivers of Sonar, I set Input to Analog 1&2 and set Output only to Analog 3&4.
In TotalMixFX for my Babyface, I set Control Room to Ph3&4 for Main Output and bottom row from left to right is Analog 1 and Analog 2 which you can see the signal is playing back and the rest of the other outputs from the Babyface which are not being used at that time. Song is playing in Windows Media Player.
When I record, the top row is Analog 1 and Analog 2 and the faders are turned up to hear the output of the input of the recording.
Also in TotalMixFX in the software playback row (middle row) I have going from left to right - Analog1, Analog2, Ph3 (left all the way with panning - ??) and Ph4 (right all the way with panning - ??)(why it has to be done like that, I do not know. All I know is that having my computer speakers hooked up to the phone output of the Babyface, and Analog 1 & 2 hooked up to my stereo (or monitor speakers) now I can use the headphones out of the Babyface (call it ph 3) and hear what I record in the headphones, turn down the computer speakers (or up) Ph 4 and also if I want, hear the recording or playback on my stereo speakers (monitor speakers if that is what you have).
Software Playback (middle row) is playing back on Ph3&4 because in Windows I have the default playback there set to Analog 3&4 while Recording is set to Analog 1&2.
Sorry cut down size of picture so it may not be clear in the TotalMixFX picture. I use in XP I think have both Analog 1 and Analog 3 checked in Sonar on the Advanced Tab of Audio Menu Item but not any more with Windows 7. Only can have one output checked in Sonar, and only had one checked in Input, so that Input if using others like ADAT I guess would have to be changed. I do not know that for sure, since I do not record with AS1 or 2 and ADAT so far but with only Analog 1 &2.
Only way I can get both the headphones of the Babyface and if I want Monitor Speakers to work.
Version RME Drivers 1.029 do not seem to allow that anymore, or else I can not get it to. (and I tried and rolled back my drivers to version 1.028 with the firmware changed also even though the same number.
Now I am happy, but will not use driver version 1.029 and I don't care about Ipad.
Have to go, wasted 5-6 hours trying to figure out what I am doing with this stuff while my new computer (windows 7) was something acting up with power switch also the other day. Everything is working as of now, I am happy, I have work to do, instead of downloading drivers and firmware that does not seem to work for me (1.029 version).
But thanks for trying anyway RME. Just getting a little disgusted with all the driver versions lately and almost went back to version 1.025. Between trying to switch to a new computer from the old one, I am done with this bit of craziness.
:-)