So I downloaded the sketch from http://code.google.com/p/mega-isp/
Changed the heartbeat delay from 40 to 20, still got the same response, tried to add the cap on the mega 2560 between Ground and reset... tried 0.1 uf and 10uf per another forums suggestion. I am still having the same issue.
I've tried changing the baud rate in the ArduinoISP sketch to 19200 per instructable blog
I get a message about expected signature.
I have tried this on two different Mega's 2560 and 3 different Pro Mini's
I have change/verified the wiring to match that of the ArduinoISP sketch.
I really do appreciate the help. I am tempted to give this a break for a while.