Ok figured this issue out and all is well. I found that my Wireless network for some reason was insisting on some sort of login for the wireless network to be access/confirmed by the Kindle. If I was asked by the Kindle to login registration process was interrupted. In detail...
After a factory reset, After selecting and confirming language, it asked to connect to Wifi. When I connected, the Kindle software was reporting that the Wireless connection needs a login to confirm. Not sure why but if I repeated this step within a certain amount of time, the login to confirm prompt was not needed.
The Kindle software then allowed me either use the current account or re-register the account... Which when done, ended up resolving the issue and allowed me to deregister it.
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