You guys were right. The cable never went through the proper hole. It went around it or something.

I'm a little worried though..I was working both levers pretty hard while troubleshooting. The cable was under tension so I'm worried that I wore down some nylon or damaged something in the process. When looking into the hole with a flashlight I saw what appeared to be a groove worn from the cable rubbing. I hope I didn't mess anything up.

Either way, it works perfectly now. This is my first experience with Campagnolo shifting and I am totally blown away with the front shifting quality. I wasn't expecting it to be so nice. On par or very close to Shimano and much better than SRAM. I think I have the RD dialed in pretty good, but the instructions were sort of confusing. It says to put the chain on the 5th smallest cog and then adjust the RD until the top pulley is in line with the 4th smallest cog. Doing this results in the chain moving to the 4th cog (obviously) and screws things up. What am I missing here???