Ok, I got it working. I had been trying to add the code in web.confg under the path: C:\Program Files\Common Files\Microsoft Shared\web server extensions\12\TEMPLATE\LAYOUTS
I changed this back to what it originally was.
Then I went to IIS and went to the Home DIrectory tab for the Web Site of my site and found the path to my site. I opened up the web.config file at that location and it already contained all of the code you had said I need to add. So I uncommented out : <!–<add name="Session" type="System.Web.SessionState.SessionStateModule"/> –>
Then I changed <pages enableSessionState to True.
I did not see any entry for sessionstate mode= so I just left it alone and did not enter one. I then went back to my site and added the web part. It worked!
Thank you for all of your help!!! Now the fun begins to see what this baby can do 🙂