I have new, not good information to report about this problem and I've posted the results here:
http://arduino.cc/forum/index.php/topic,82046.0.html
It's beginning to look like either a design flaw, or bad batch of mega rev 3's to me, as a mega rev2 is working just fine.
@Lefty - "sometimes you are the windshield, sometimes your the bug." - Arrrggghhh, another quote comes to mind as well "Have you ever considered that your purpose in life might be to serve as an example to others?" (grin)