I went and double checked because I have missed simple things before. It is routed through the correct side of the clamp bolt.
Fiddling with it a bit, I got it where it will shift up to the 2nd smallest gear properly and on up and down the sequence, but it doesn't want to drop into the low gear again. If I manually aid the return spring with my hand it will drop into the smallest gear. I have gone in and lubricated all of the moving parts of the derailleur but to no avail.

The last time that I got my backside kicked by a shifting problem was with a bent hanger. I went and got the alignment tool and have never gotten beat again until now.