You are spot on. The disconnect here was that when I selected the "blended objects" and then tried to utilize the "blend options" I expected the "replace spine" option to be available. (using logic of course...my mistake) As you said, both the blend & the new spine must be selected when you click on "blend options".
Thank you,
-Dan
P.S.
Is there a more frequented forum for Illustrator users that you recommend? My post was a week ago. Thanks again for your reply, I still had not resolved it until then.