So these are my observations as of now. I've been trying to get the SPP configured all day. I installed it first on a 32bit XP system and it started working beautifully at first. Once I started trying to add profiles things got mucked up. I had all but given up on the first system install. Movement was choppy, couldn't get key asignments to work. Didn't matter what profile I selected. On the second system install I installed the 64bit version. Again it worked beautifully in the beginning. I created a custom profile for Chrome (still no luck getting it to work in IE) but chose the Joystick profile template which ended up being a bad decision as it's not necessary for 2d mouse functions. I ended up removing that profile to create a new Chrome profile. Unfortunately the new Chrome profile was exhibitingthe same jerky x/y axis only movements and the button assignments now are not working. I uninstalled the application, restarted, reinstalled, restarted only to find that the Chrome profile was still there and had the settings from the prior installation. So based on that I have to assume that the xml (? I'm guessing here) or whatever file that is created does not get removed upon uninstalling of the application.
I've answered my own question. I tried exporting the profile and found that it was stored in my Windows/system32 file. It was named Chrome.xml. This was the suspect file. I cut it and moved it to another location (I did this in case it was important - also you may have to do this more than once). I then went back to the 3dconnexion Properties gui and went to manage profile, my Chrome profile was still there so I removed it. I then closed the gui, restarted Chrome, restarted the gui, and then added a chrome profile again. The choppiness I was experiencing before went away and I'm able to assign functions again.