I'm not sure of anything. I am pretty certain that it is a cable/housing issue, however. I am going to take all the housing off again and re-inspect. I know that when i cut the housing there were "burrs" where a piece of the spiral housing would be sticking into the opening. I tried to file the face of the housing to make it go away but that may not have worked.
Sheldon Brown's site says to file it, so i assume that just means file the face. I don't have a file small enough to stick into the hole. Thanks for the help gentlemen. I will give it another go after work.