Okay, finally I figured it out. Since I'm a "newbie", I missed a couple of things:
1. You don't need to install a new ASIO4ALL driver. It comes with 3rd generation of Focusrite. (I uninstalled it. This was the one that crashed my computer.)
2. After if I select ASIO driver in setup, I have the option to pick ASIO Focusrite USB. Suddenly, everything falls into place. Now I can select multiple inputs.
This post also helped me to setup inputs:
https://support.focusrite.com/hc/en-gb/articles/206849199-How-to-select-outputs-in-Cakewalk-Sonar
I'm still running into issues but at least I can record on all channels. I cannot pan kick to the middle after recording. Same with the snare: it is always on the right and cannot be panned to the middle after recording....but I'll figure it out. I guess that's called the learning curve ?
Thanks for the help again,
Laszlo