A little additional info.....
I pulled the chain off of the EZ Sport today. The tool still indicates 100% wear in most places on the chain though the metal ruler indicates no stretch at all.
I hung the chain from a nail up in the garage rafters and hung the new chain right next to it. I find this is the easiest method for me to quickly size the new chain. With a bit of tension on each chain it becomes readily aparent where to break the new chain. Son of a gun!! The links on both chains line up perfectly from top to bottom. My tool indicates no wear on the new chain. I definately have wear evidence on my cassette, to the point wear I'm ordering a new one tomorrow from my favotite LBS.
My theory: The surface of the rollers have worn down before the holes in the side plates and the pins wore down. My tool picked up on the roller wear whereas the ruler method has no way of checking this type of wear. I intend to verify the validity of this theory at the LBS tomorrow.