Thanks Basara,
You are the genius of this operation. I finally figured out that I had to enable FREE SHIPPING after wasting many hours. What I think was throwing me off was the fact that the USPS extension has an option to select free shipping which I thought would have taken care of the free shipping and the other options would be presented as PAID options. I was wrong.
However I now have another strange problem. FEDEX is returning some crazy prices, as much as $500 for a small package within the same state, while USPS is on the opposite end. Am I missing something somewhere else?
Thanks again,
Robin