So after spending most of the evening trying to set up my new user profile, I 
fixed the option key problem.

I was using the status menu to check the battery.  In doing so, I passed over 
the Text Input item in the extras menu.  It was set to Unicode Hex, rather than 
US.  I had actually checked that setting under keyboard prefs and it was set 
correctly, but evidently, the setting in the Extras menu is separate from the 
setting in Keyboard prefs.

This has easily been one of the most annoying problems I've ever encountered on 
the Mac.  On the upside, I don't have to spend the next week configuring the 
new user profile.
Cheers,
Donna

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