Rikk, I did have the "store with catalog" box checked. I don't remember if I checked it or if that is a default. In any event, what is the advantage to storing the presets with the catalog? Hmmmm. Is it so if you use an external drive on two different machines, they have the same Presets? Never mind, I answered my own question.
There is no advantage. Quite the opposite.
Read this (post # 5): http://forums.adobe.com/message/4885942#4885942
and this: http://www.lightroomforums.net/showthread.php?14169-What-is-the-purpose-of-the-quot-Store-Presets-with-Catalog-quot-optionhttp://
The only scenario where it makes sense is if you have two computers and want to work alternatively from one of them (with the same hard drive), and you need to access your presets from either computer.