Please try this using a new profile. It's likely that something messed up in your current profile that's causing this problem. http://kb.mozillazine.org/Profile_Manager
Checked the Profile as the link above and found 3 Defaults! One in Applications/Library/Mozilla and two in User/Library/Mozilla. I moved the profile folder from Applications ... to the desktop. Created a new profile and moved the bookmarks from the old to the new profile. Everything seems to be working fine now. Thanks for the help.
In your exceptions list of allowed websites, make sure your web addresses do NOT contain the WWW.