I went back thru and tried all of this again on a desktop using the same Linksys usb card, the live cd not my thumbdrive version. When I started aireplay, airodump stopped after 1-2 mins, my ap just left. I stopped airodump and started again with the same settings
airodump-ng -c 6 -w webbytest --bssid [routermac] rausb0
and I looked into root and there was the file.
The packets are being captured and the file now has ivs. Have a screwed up my jumpdrive or missed a boot setting when starting BT? I cracked my key in 24 mins. (aircrack 0.7 r214)