Thanks so much hollownation for putting in some response. It was a total morale boost. People do read and reply in here.
I was aware of the items listed in the manual. I would say that the manual is weak in that specific section. Here is a post for posterity should anyone else hunt the forum for what I had been looking for.
To get reason to sync to external midi clock you need the following items satisfied:
1: in the manual, set your advanced midi prefs to list your sound card's midi port as the clock source. (i knew this one)
2: In reason options, set the sync to external midi. (i also knew this)
3: attach a midi source to the sound card port and ensure the data is getting into reason. (simple)
3A: note data is a good test that reason is set up correctly.
3B: the clock needs to be sent on the right channel.
3C: Reason 6.5 does not sync up to the signal sent from your external midi clock source unless you also send a start message. In Reason 3 and probably earlier, it synced the moment you selected external clock.
For me, I like to use my Korg Radias, and port the midi clock to reason so I can get much more complex rhythm, and have that in the same timing as my Arpeggiator playing in real time from my radias. This sequencer does not send a start signal (that I know of). I had an old Korg DDD1 kicking around. This does have a start and stop midi message. I chained the radias and Korg DDD1 together so I could send reason the start message, then I could control the tempo from my radias.