I sweeped all the BTC out of Multibit Classic into KeepKey using their utility and the correct password that worked.
I now have all the BTC in the Keepkey wallet and the Multibit wallet shows 0.0 BTC. So problem finally solved!
I have uninstalled all the Multibit applications from my computer.
Should I delete all the files under ´application support - multibit´?? -This is where the .wallet and .keys back ups are.
Its my understanding that keepkey generates and stores new addresses for each transaction. Does this mean the old key are useless now the multibit wallet is gone?