Ok, here's what I have done.
I formatted and reinstalled OZ 3.5.1, installed the oz-compat libs, Opera, ncurses and ncurses-terminfo. So far so good. I then installed Kismet 3.1.0 (I believe), configured the kismet.conf (main changes were setting the user to root (too lazy to add another user), disable gps and sound, and set the adapter to hostap,wlan0,hostapsource). I then disabled sounds in the kismet_ui.conf file.
Next was to do a export TERMINFO=/usr/share/terminfo (where it is installed, I doublechecked), closed the terminal, opened a new terminal, and ran kismet. Once again, the server runs, but when it tries to start the client (at least I presume that is what it is doing), I get the exact same error that I posted before.
The card I'm using is the standard Ambicom WL1100C that everyone seems to have good luck with (in fact, normal network operations work fine, it's just kismet I'm struggling with). I did also try one of the prism2 options in kismet, but it didn't like the card, so reverting back to the hostap, etc fixed that.
I did try to add TERMINFO=/usr/share/terminfo to the /etc/profile, but when I tried to "run" it so that it would effect the change (by doing a ./etc/profile) I got a "permission denied" error. At that point I removed the entry and did the export, close, open deal as described above.
While overall everything is running better, I still find myself lost and hopelessly confused with kismet.
Further advice/suggestions would be greatly appreciated.
I'm fairly sure I covered everything I did, but please ask if you need more info for what I did or did not do.
(Also, I didn't see an option to change the terminal type in the kismet configuration file (to change from vt100 to linux) and didn't see a flag for it. Off to do more searching.)