Just tried this to no avail.  Same status after I kill the process.  Of note is that before killing the process it does say that cgminer is at 120% memory usage.  Killed twice, the process disappears from the list.  Go back and Restart (not Start) and CGMiner starts back up but doesn't mine and produces the same result.  For good measure I restarted the whole machine and tried this process again.  Also proceeded to reflash the firmware and tried this method again.  No luck.

Of interest to anyone who is after the Bounty or who can otherwise help, the first time I went to start up the Avalon to try this method, I was unable to get the fans to spin up using the original power supply. I was working on this unit less than 12 hours previous, nothing had been touched and now I was seeing the Red and Yellow LED's and no spinning fans from the old PSU.  (whereas in my previous post I indicated that I was able to at least get the unit to power up with the old unit)

So, I went back to the new confirmed working PSU that I had bought, and this time instead of reusing the PCI-E cables that come with the Avalon, I used the PCI-E cables that came with my new PSU.  (Reusing the old cables made me fairly confident that I had plugged in PCI-E to PCI-E and CPU to EPS before)  The new cables or just the divine providence of Satoshi made it so that the new PSU actually powered up the fans and got me back to the Green and Yellow lights and the same state of affairs as before.  Not mining.

Since I now have a working new PSU, I'm going back and trying everything that has been tried before (disconnecting and reconnecting modules individually, etc...) to make sure I haven't missed a step in checking everything.

Thanks to everyone who has tried to help so far, hopefully someone will get us pointed in the right direction and the bounty gets paid out soon.