Here's the final update. Weirdness prevails - I started to replace a couple chain rings, now I have new 34t cassette, bb bearings, and new crank(Truvativ Firex 48-36-26).

OK - I have the gearing I wanted all along. I haven't received the new crank yet. However, I have installed the new 11-34 cassette Shimano HG50. I like the added range and the index shifting still works fine. I had to turn the "B" screw in about 3/16th's on the Deore XT deraileur. I found a stiff bearing on on the non-drive side of the BB. AND I need to get my fork examined - I think, I know I see a crack just above the drop out. Lucky I bought the bike at a good shop.