Well, not sure exactly what fixed the problem, but seems to be working. I lubed up the cable/housing with a few drips of triflow on my fingers. I also turned the rear barrel back in all the way and started shifting through the gears and the were all working fine now. Maybe I posted to soon. My only concern, and doesn't really seem to be an issue thus far is that there is about a half inch of play in the cable when on the smallest cog. That is to say I can pull the cable slack away from the frame a half inch. I cant say I remember if this is how it was previous or not. If I turn out the barrel so much as 1 click it messes everything up again.

Of course the real test will come when I actually get it out and test under load.