Not sure exactly what the problem was, but I have figured out
a way to "fix" this problem. After talking with Adobe support and
them telling me that we needed to upgrade the server because RH7
has a lot of background "things" being generated and this was
causing my error with RoboEngine 3...
Indeed it was one of those "things"... Not sure which one but
here is how I fixed it.
1. Created new project
2. Created same folder structure
3. Imported all corresponding files to appropriate folders
4. Re-Setup everything else up and published
Voila! Works good as new!