Hi,
Back to square one! As I reported I decided to sleep on things for awhile and installed the button the way the manufacture requested. Just the diode across the button.
I checked the bell chime and all worked fine overnight. Today it's off, no chime.
Had to switch the circuit breaker on/off to reset.
Now of course I don't know if it was the chime all along! I'm leaving everything as is over night and if it's out again I'll exchange it at Lowe's.
My only thought is was it really defective out of the box or did the LED - Diode - Resistor cause a problem within the chime??
Won't know till tomorrow or perhaps the next day. If I exchange it I'll test it for a full day.
I purchased a resistor substitution box today, thought that might be better then swapping resistors by hand while building a project!
Thanks again