It figures I spend hours on this and then 5 min after posting I finally find
the problem.
For those interested I needed to add a :method => "GET" to my observe_field
per below
<%= observe_field "project", :url => {:action=>"select",
:controller=>"projects"},
:method => "GET",
:update => "project",
:with => "'id='+value" %>
Bob
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