jnealand your hint was spot on. A bit of a background, after spending most of my PC life in the Windows world I converted to MAC a while back. One thong that was and continues to be not very clear is how MAC manages its file system.
Bottom line I was telling xLights to save the xml file in one directory while saving the fseq fie to a different directory. The only reason I discovered this is by looking at the xml as jnealand suggested. While looking for this file I noticed I had two copies, one with a single color pallette assigned to both models and tother with two color pallets assigned to one of the models. Conclusion this xml file was causing the lights to go from red to blue.
One I got both synced. I had to recreate the xml file with two E1.31 sets one channel 1-512 the other with channels 513- 1024 and re-define the models. After uploading the new sequence, and re-establishing the play list. all is fine. I can drive all 600 channels now.
Wow what a learning curve.
Thank you very much all how helped and in particular jnealand