Thanks very much for the suggestions. Let me clarify just a couple things.
On my Win 7 machine, my version of Mathematica is 10.0.2.0. I'm not aware of a newer version.
I know the IP address I am using is correct as I separately login to the RPi with it via ssh.
I am NEVER prompted to enter a password. Instead I get the error I posted earlier in a popup dialog after a pause of about 10 seconds. Again that is:
SSH's connection for kernel 'Raspberry Pi' was unexpectedly terminated. Error code = 103.
My kernel configuration options looks like the following.

The main difference I see is that mine has an additional advanced option for shell command.
I should also point out that I assume my actions on the Win 7 machine will launch mathematica on the RPi. If this is not the case, please let me know the options the "wolfram" command needs on the RPi.
Thanks again
Cliff