An update and MMTTY helpful hint.
Thanks to Tom K3CRK I now have MMTTY working. I kept trying to say to heck with it, but Tom stuck with it, requesting screen shots and offering suggestions.
Curse all computers!
Reboots, configuring MMTTY, re-installing MMTY, closing every other program, tearing my hair out, etc. all
failed to get anything other than "sound card not found" from MMTTY. Of course the speaker output from the sound card works just fine for other applications. What the???
Well, (at least on this Windows 7 machine) if there is nothing plugged into the MIC jack, it doesn't think there is a "recording device" and if MMTTY doesn't find a "recording device" for reception it throws up its hands and will not transmit. So I put a dummy plug in the MIC input and MMTTY started behaving.