Well the grouting is done and I must say it looks really good.  We cleaned up our tile work and then vacuumed up the little specs of grout that seemed to be everywhere and them started on the grouting.  We had purchased two grout bags and were going to try and use them, but they really frustrated me so we ditched them.  I started using the regular grouting trowel and that was working like a charm, so I did the grouting and my wife was following along behind me doing clean up.  Once we got started it went really smooth and it only took us about 3 hours to get it done.  We used the pre-mixed grout for this and even though this is more expensive than the other stuff, I would definitely use this again.  This time the manufacturer of the grout got it right with the area coverage.  We used two buckets to complete our area, which was what the directions said it would take.  Now all we have to do is let it dry for 24 hours and then we can put the sealer on.  After that its on the new molding which will complete the project.  Here are pictures of the completed grout work, will update with the molding pics as soon as we are done, enjoy.