My second program only turned on and off the blinkenlights and they are working.  This means the OUT and XOUT registers are working (and that I placed the LEDs in the right spots).  I also did a quick check on the X register and that is working as well.  At this point I wish I had included a reset button.

I'd like to get away from single stepping the clock since it is kind of tedious.  I'd like to make some kind of delay function which will let me see the LEDs with the clock running at full speed.  I'm not sure if I can because I'd need a delay in the millions of clock cycles.  And I need to verify at least the add function.  And the conditional branch too.  I'd need to store the counter value in RAM and I haven't verified that yet either.  

OR I just feed it a very slow clock.  That sounds easier.

So next I step through a simple count-up program.  And do a conditional branch at the end.  And then maybe do some logic functions on the AC register - XOR, AND, OR.  And then maybe do a count-down program with different conditional branch.