To tie this thread up...
After talking to GoDaddy support, X-Cart support, StangFix support (Sluggo) and Body First support (my brother), I got it straightened out. Seems the installation instructions failed to mention one item about where my web address needed to point to. After trying many diff configs, I found that the simple word (/xcart) was missing. Once I added that into the registration process it worked.
So, now I'm back with the original template and can go about screwing it up again.
Thanks for working on it Randy!