Thanks for the reply Felix.
I still don't know why the current version wouldn't pick up those .h files but the solution was a re-install of Arduino IDE.
I deleted the current version and installed 1.6.1 from the previous versions library, under downloads on
www.arduino.cc .
WORKED FIRST TIME!
The strange thing about the most current version was that the under menu "Sketch/Import Library", all the folders for the .h files were listed at the bottom. But IDE couldn't find them when I verified the code. Strange. You said in your billion or so post not to trust the current IDE versions, so that gave me the idea to load 1.6.1 and it worked first try.
Thanks - on to the next problem