Well I have been playing the amp with the mod R2 now for a few days and I have it tuned in nicely!
It does seem to me that once I was able to turn R2 up a bit I find the tone of R2 is better than it was before, probably just more signal made it beef up some.
Since I replaced the direct out I had the knob to put on the new R2 volume pot so it looks right. I also will find a rubber plug for the open Dir out 1/4" hole so it will look better.
Thank you all very much for the help getting this sorted out, happy camper here and I now have full control of all three channels !