I created a New Location and created a new admin account - problem persists.
One other item I shoudl have mentioned. There are times when the system tells me that sharing is on, and it is not. Here is my console when bringing up sharing and it tells me that it's on, but it's not...
9/14/11 9:33:58.000 AM kernel: AirPort: Link Up on en1
9/14/11 9:33:58.000 AM kernel: en1: BSSID changed to c8:bc:c8:ca:10:e9
9/14/11 9:33:58.657 AM com.apple.InternetSharing: InternetSharing: com.apple.InternetSharing.broadcast-0 has been started
9/14/11 9:33:59.875 AM ntpd: bind(28) AF_INET6 fe80::cabc:c8ff:feca:10e9%6#123 flags 0x11 failed: Can't assign requested address
9/14/11 9:33:59.875 AM ntpd: unable to create socket on en1 (16) for fe80::cabc:c8ff:feca:10e9#123
9/14/11 9:34:13.657 AM UserEventAgent: ServermgrdRegistration cannot load config data
9/14/11 9:34:13.657 AM UserEventAgent: ServermgrdRegistration oldConfig is nil during net changed notification
9/14/11 9:34:18.223 AM configd: network configuration changed.
9/14/11 9:34:18.224 AM netbiosd: network address or mask changed for en1
9/14/11 9:34:18.232 AM UserEventAgent: CaptiveNetworkSupport:CaptivePublishState:1211 en1 - Probe
9/14/11 9:34:18.232 AM UserEventAgent: CaptiveNetworkSupport:CaptiveStartDetect:2371 starting probe to determine captivity...
9/14/11 9:34:18.232 AM UserEventAgent: CaptiveNetworkSupport:wispr_detect_redirect_async:424 user-agent:"CaptiveNetworkSupport-173 wispr" url:"http://www.apple.com/library/test/success.html"
9/14/11 9:34:18.233 AM UserEventAgent: async_http_read_stream:375 kCFStreamEventErrorOccurred kCFErrorDomainCFNetwork/2: The operation couldn’t be completed. (kCFErrorDomainCFNetwork error 2.)
*insert 10 attempts here - removed to save space*
9/14/11 9:34:22.046 AM UserEventAgent: CaptiveNetworkSupport:wispr_detect_http_done:184 NetworkError: Failed to retry probe. Giving up after retrying 10 times
9/14/11 9:34:22.046 AM UserEventAgent: CaptiveNetworkSupport:CaptiveHandleRedirect:2264 Unknown result value: 7, assuming online
9/14/11 9:34:22.046 AM UserEventAgent: CaptiveNetworkSupport:CaptivePublishState:1211 en1 - Unknown
9/14/11 9:34:22.047 AM configd: network configuration changed.
9/14/11 9:34:33.219 AM UserEventAgent: ServermgrdRegistration cannot load config data
9/14/11 9:34:33.219 AM UserEventAgent: ServermgrdRegistration oldConfig is nil during net changed notification