Thanks DG I will keep that in mind. Things are getting much better as time goes on. Had a few hours to play and here is the new results (this is now me at home on my main DAW machine in the studio that began this thread).
1. The software licenser was put there from the demo, but after I loaded the key on the USB Licenser I didn't need it anymore so I removed the file in this location:
(Windows 7 64bit) C:\ProgramData\Syncrosoft\SeLicenser.sel
2. After that all the eLicenser conflicts went away. Then I removed the 6.5.1 patch from using remove updates in control panel. (this didn't fix anything, so I think I will re-install it later. See #3).
3. I was still having serious issues with instruments stopping working etc. This definitely has to do with some instruments not liking being an Instrument Track. After I read the don't use that kind of track, I started using VST versions of the ones that were multi-channel (omnisphere, kontakt, VE PRO etc) and the problems went away (thanks to the VE PRO manual teaching me VST Setups :). Seems Instrument tracks are good for only single instance plugins (like VI PRO2, or Single Instance Kontakt). That cleared that right up.
I think most of these problems are just user related and noobiness at this point. Any hints on how to setup my Multiface 2 with Cubase? No quick tutorials I could find and when I started mucking with it in device setup and vst connections, all my audio stopped working :). So I reset to a single "Stereo" setup and it's working. But it is hardly optimized for my RME Card.
I was also thinking of buying the Mega Bundle on macprovideo for the entire Cubase 6 series. Seems pretty cheap for so much information, but not sure how good the information is. Definitely still finding Studio One V2 far superior in many ways for my taste.
Maestro2be