Thanks to John Fields, I now have a much simpler light controller. See the new here
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and if you missed the old one you can see it here...
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It worked the first time with no troubleshooting. As a bonus it is a lot easier to write the code to control this chip than the flip flop and decoder combination I was using before.
Thanks again for everyones help. If anyone needs help with C coding for a one of the Rabbit modules let me know. You can find a working email address for me on my web site linked below.