Problem Solved.......... I just left Brett's and he informed me that under the system hotkeys setup screen the scan code for "code list" cannot be the same as feedhold....Apparently having the spacebar as a hotkey for the code list window and feedhold does not work. No, all kidding aside that was not the intention, I must have at some point clicked the "code list" button and then tapped the spacebar to check to keyboard scan code for the spacebar and left it there. I also was mistakenly referring to the "code list" window as the Gcode window. Duh I never drew the conclusion that the 2 were the same. Also the XML I checked on the other computer was indeed not the same as the one I was currently running that had the problem with so the problem did follow my Xml file.
2 very important lessons here: 1) pay close attention to what you are screwing with even seemingly small changes you may not even remember doing still have an effect. 2) keep your backed up files sorted out, I apparently had several copies of my xml all named the same thing some with changes and some without, so good housekeeping when it comes to file management is essential. I have preached this way more that I have practiced it.
Well, even though I feel stupid my problem is fixed! It seems the spacebar was only doing exactly what I told it to do, have a look at the screen capture if you are unfamiliar with the system hotkeys screen and are having this, or a similar problem. Code 32 is spacebar.
Thanks Brett for the help!
CB