I did one more reinstall with NetbookInstaller 0.8.2. (I should mention to newcomers to this thread my install uses 10.5.6 from a retail disk.)
This time after the first reboot (not safe mode) I ran Software Update instead of using the 10.5.8 Combo Update file I keep on my install USB stick.
THEN I booted into Safe Mode and ran NetbookInstaller, checking Chameleon Bootloader, 10v Extensions, Create dsdt file and Enable Remote CD (no real reason, it was checked anyway). Reboot.
Now here's what I think is the key move. When I migrated my user account from the backup drive, I kept Applications checked, but unchecked the Files and Folders from my backup drive's top level.
For good measure after the migration completed, I ran NetbookInstaller one more time before I rebooted.
I rebooted into my migrated account, all apps were restored (including all Mail accounts and settings) and sleep is now working exactly as it should - with audio when i take it out of sleep.
What a learning process. But hell...at least I learned. I am curious as to what was causing the problems, but for now I won't lose sleep over it.