>As I am writing this description it occurred to me that it may be related to
the CW sidetone, and sure enough, when I adjust the PITCH, the offset varies
in relation to the center frequency of the P3 display. 

Are you using the speaker?  If so it's possible the speaker audio is
modulating the K3's VCO at the Pitch offset.  Try headphones and see if the
line disappears.  If it does, then you may need to make the following mod:

http://www.elecraft.com/manual/ELECRAFT%20KSYN3%20Stiffener%20Mod%20Rev%20D.pdf

73,  Bill
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