Thanks for the response. You notice in your picture how the floor is still sitting up 16" in the basement. What seemed to be causing the problem was that the stick framed wall was not set to have the floor hanging inside. Once I went and changed all foundation walls to have the floor framing hanging inside that issue went away. So, it is not exactly how I want the foundation built, but easy enough to adjust in the field. If anyone knows of a work around so that the floor framing would actually bare on the top plate of the stick framed foundation walls I am all ears.
Brian