Ok, so the process has moved ahead.
Configured Soundmodem using 'soundmodemconfig', and after wrestling with it, some keys I've found:
* /usr/sbin/soundmodem needs to be chmod'd to 4755, to give it suid (Run as root).
* /usr/bin/soundmodemconfig needs to be ran as root, sudo'd
* /usr/bin/xastir needs to be chmod'd 4755, it needs to run as root in order to grab the ports
or
* /dev/sm0 (Or /dev/soundmodem0) needs to be chmodded 777 (World RW)
* Your IP address for sm0 needs to NOT be a routable address, or needs to be a AMPR address. Funny things happen if you give it an address inside of your network :)
So, I've gotten my computer to makes noises when I send a packet out (via Xastir). Not transmitting yet. But, Xastir doesn't seem to see any packets from the local APRS systems (I have a stereo dubbing cable from radio to PC). And soundmodem doesn't seem to see any packets coming through the system either.