"Here is what the cause was: We have an active site without a static IP assigned to it.  So, when we try to run another site on local host and browse to it and put a Host Name to it, not only does it create the new SITE (with the globe next to it under Sites folder) but ALSO creates a virtual directory by the same name under the active site with no static IP assigned.

 Because the new site STILL got created, it was assumed that it was the one causing issues. So sure, putting in <clear/> tags and <remove name= ... /> tags in THAT web config resolved the conflicts for the web config in the virtual directory of the active site with no static assigned IP.

However, what does one think?? Editing the file of the new site is what fixed the conflict, right, so it's the web config being targeted, yes?  Nein! :)

Long and short of it is the site got installed.  It appeared to be a lot of things.

Thanks much for the input.  I really appreciate the response and hopefully this will help someone else."

You were right about the virtual dir and I could not figure out how it got there.  A tech from our ISP genned me in on IIS and explained this is default behavior.  The strange thing is it creates the Virtual Dir AND the New Site!  So one *thinks* the New Site is being browsed to when it isn't.  It's sitting there like a lump of coal appearing to be something it isn't.

Site is FINALLY installed.  Thanks for all your help.  This was just one of those weird ones.