SOLVED
OK. I kept reading to find that my approach was wrong on this. Here is my fix:
1. Install Kindle Reader for PC 1.17.44183 and disable automatic upgrades
2. Open Kindle for PC and make sure Amazon does not upgrade it anyway. Otherwise re-install.
3. Open Kindle for PC and open books to download them
4. Make sure books are labelled as 0% otherwise open each book, go to end, go to cover then close
5. Make sure the KFX Input Plugin is installed in Calibre
6. Drag and drop each book from "My Documents\My Kindle Content" into Calibre window to import
Hope this helps someone...
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