Oh My Gosh!
"If you're going to use it for modulated IR, just connect one end of your LED to your constant 38kHz source, and the other end to another output pin.
Waggling the other output pin at your desired (<38kHz!) rate produces a modulated 38kHz IR beam."
AWOL, dude you are a genius. I was thinking about doing a logic gate for that. That is so dang simplistic and perfect. You can just have the the direction of the led to invert the signal. This is great. Thank you!