As an update - I am now in another $1K in servicing costs for this problem.
Solutions tried to date include:
1. Overall check of system for proper amounts of refridgerant, valves, etc
2. Installing a stronger furnace motor blower,
3. Pumping and replacing the fluids in the outside unit,
4. REinstalling the indoor coil (moving the setup from being installed directly flush with the top of the furnace unit to leaving a six inch gap to allow more air circulation within the furnace unit - not sure if this is a requirement).
Problems continue - on the warming mode, it just blows air and does not change the indoor temperature. In the cooling mode, the pipes freeze up and minimal air flow occurs and the indoor temperature does not decrease.
Anyone have any further suggestions? All the techs say the heat pump unit is fine - am I getting to a point where a complete removal and reinstall will all new parts makes most sense? THat was basically done yesterday