Thought I would update this. Mic audio is working just fine. The problem was with the software I was using (DXLabs). I had one of the slider controls set for the MON function of the K3 and it was set with an incorrect parameter. So when I tried to make any adjustment it would just go to a setting of 25 and cause very bad feedback. With the exception of a "clunk" in the audio when releasing the PTT all is fine. That may be the mic.
To almost complete the system I picked up a two serial port lantronix serial ethernet device for my watt meter and rotor controller. They are working fine too and can now control the rig, rotor, meter, antennas and amp remotely.
Now my only issue I know if it the REMOTE ON for the K3. I have the correct IO connector to go to pin 8 of the accy connector. But as soon as I plug it in the K3 powers up right away. This happens wheather I have the RRCs connector or not. I thought it was not supposed to connect or "turn on" the K3 until you click the button to connect the RRCs.
Now on to FSK.
73
Greg - AB7R