Great! That got me past the device error problem. The change produced:
avrdude: Device signature = 0x1e950f
avrdude: reading input file "/Users/raymondjohnson/Arduino/build/macosx/dist/tools/avr/etc/grbl_v0_8b_edge_328p_16mhz_9600_build20121013.hex"
avrdude: error opening /Users/raymondjohnson/Arduino/build/macosx/dist/tools/avr/etc/grbl_v0_8b_edge_328p_16mhz_9600_build20121013.hex: No such file or directory
I now have some directory/path problems to resolve. Greatly appreciated.