Bad news...the key 40 encoder that I got does not work with my computer. I have 2 old gaming rigs and both have issues. It seems to work on the wife's laptop with no problem which makes no sense because any computer is supposed to see it as a PS/2 Keyboard and that should be universal. I am working with the tech support but it doesn't look like this is going to go anywhere. So I am ordering a new Key Encoder today and will give that a try this weekend.
In the mean-time, I found out that I wired the grounds traditionally but I can daisy-chain them. After I daisy-chain the negitives together it will help clean up this wiring nightmare a little more. So - I will work on that and few other odds & ends until the new key encoder shows up. Bummer.