OK, the plot thickens.
(I did warn you I was a Linux Newbee)
Same error, file not found when I use the local IP address of the server. I used wsftp to copy the 2 debug files (I created one for each of the versions above) to ibays/Primary/html.
My next step is to jump into the abyss of command prompt territory and navigate to folder given by cactus and check contents. It appears that the contents of what I'm seeing under the ibays is not what is being used for the website. If this is the case, something is amiss as I was given to believe the ibay folder were used for all Website pages etc.
let the fun begin, a linux Luddite let loose with the command prompt

Edit:::::
ok, found something interesting. If I open IE and enter our website with /index.php instead of blank, then our site is displayed. Also tried using our static ip address, same thing, site displayed. Just doesn't make sense.