It is fixed. I used the shotgun approach due to looming deadlines. I uninstalled all NI software and only reinstalled LabVIEW 2010 SP1. In using the NI change/remove window, the 8.5.1 RTE was not in the list even though it showed up in the License Manager. I was watching the stuff come off the computer as they wizzed by in the progress window and I saw the 8.5.1 RTE get uninstalled during the NI System Components uninstall as the very last thing to show up in the NI change/rtemove window after everything else was gone. The 2010 SP1 RTE was uninstalled at that point as well and was not previously a selection in the list. Painful but I'm back up and running!
Thanks for all of your help.