Nm. Figured it out. As it turned out, it really was a SD card issue.
I never knew SD cards still came in 128MB. Whats so special about the stock memory card anyways?
Anywho, a cheap $5, 4GB no name replacement from Fry's did the trick.
As it turned out, Solid RED = Flash Successful, BUT, SD card is wonky. Either it cant find inject.bin that is blatantly in there, or it couldnt read the SD card.
As soon as you flash the duck, pull it out and insert your replacement memory card. Then insert the entire ducky, naked, back into the USB port, it should immediately switch from