Well, as it turns out, the KISS mentality should be applied. It is repaired... but, I will answer all questions to my question. The radio powers up and receives normally. Radio is programmed for ham frequencies, but I checked it for the actually frequency range it was designed for. Same result.
No beeps or boops, RX is normal and quite sensitive. Voltages and supply are good, I use the same setup for other radios. Radio does not reset or power off.
Radio is on, microphone plugged in. Press mic key. 1 sec xmit. Receive confirmed on handheld radio.
Watt/swr meter deflects and briefly registers output. Let off PTT, wait a few seconds and it will repeat.
Verify programming for any variances (note: I use newer software for other radios, as a result I am not as familiar with the kpg29d version). It appears I had it right.
My curiosity was killing me, so I actually tore radio down and checked a few basic components. And then I tried to most basic simple thing... All of you can slap me. In fact I have already done it!!!
I took the microphone apart. Did you know that the small piece of foam that is glued to the PTT switch can double as a 1 second xmit timer?? Perhaps this is a delayed feature after many years of service!! It worked perfectly, over and over again.
LOL. I recreated it a dozen times before I tore it apart and repaired it. If it hadn't been so perfectly timed, I would have checked the microphone first. In fact, I am guessing the radio was removed from service because of it (not by me)!
To add to this, I didn't have a second compatible mic that was handy to plug in. I always check the microphone with a spare, but this failure was so perfect. Besides, my other Kenwoods use RJ-45 instead of RJ-12 connectors.... excuses - excuses.
Anyway, I detailed my findings for the next fellow that has something similar. This simple problem may apply to many older Kenwood radios with a million miles on them.
Now, I am off to my next project. I am going to convert this radio to be somewhat frequency agile using a DTMF pulse controller for a remote base project. Just need to have the channel up and down capability moved outside the front panel.
Thanks to everyone that responded. All the questions were valid based on what I told you. And now I run away with shame over a stupid microphone!!!!
Enjoy your weekend!
Craig