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Thanks for the affirmation.  That was the plan.

I have added 301 redirects via htaccess from the subdirectory to the new domain and they are sending the traffic correctly.

I could not do a change of address in GWT because it is a subdirectory and not a root domain.  I am in the process of getting sites to change their links to the new site.

Thanks,
Alan Smith

I'd recommend ScribeSEO  (affiliate link) or http://scribeseo.com (non-affiliate link) Great tool for keyword checking right on the post as well as some basic SEO review.  It has a plugin that works great in WordPress, Joomla, and Drupal.