Ok !!!! (posted at the same time overloaded suggested it - we must have been typing at the same time)
Call off the hounds. I figured it out.
On the pocket screen there are two data entry boxes - one called "Overhang" and the other "finish". I noticed the "finish" box had 0.500 in it (no idea how it got there, I've never used pocket before). The light went on when I looked at the simple rectangle I created and noticed that the blank area around the spiral looked to be about 0.5" wide. I guess this "feature" is supposed to tell the routine how much to leave around the edge of the pocket. (What for I ask - but what do I know)
I guess the reason it would not pocket the shapes in the other file is they were all not much more thn 1/2" in height (actually about (3/4") so the pocket was ended before it got started.
I set the "finish" value to 0.0 and the pockets work now.
Can't say I didn't read the manual on this one

('cause there isn't even a basic one)
I surmised the "finish" value might have someting to do with the smoothness of the pocket (finish - get it) such that maybe it went over it a few times to make it smooth, so I ignored it. (don't touch the controls you know nothing about)
So the question is: what does the "overhang" value do?? now that I guess I've figured out the "finish" doesn't control the "finish".
Yet another one to add to the list.
This is too much !!
Sage