I went with
option #3 , it didn't take long at all to write the code to do this using LibBeecrypt. It took somewhat longer to get LibBeecrypt to link on WIN32 platforms, but I got this working on Sunday. It seems to be working great with three or four machines uploading files at the same time, tomorrow I'll find out if this fixed the problem completely or if there is some other problem lurking in there.
A note on
this also. As much as I complain about what I did or didn't learn at OSU, I can say they have at least equipped me with a certain utility to learn things for myself. No, I should say that I already had this utility but they have contributed to honing it significantly. Further, I can say that I would rather attend a school that teaches fewer real-world skills but leaves each student with a sharper ability to learn what they need to for themselves - Oklahoma State did give me that.
Today, I'm relaxing. I've been pushing hard for the last 6 weeks and it was time for a break.

Went with option #3...