Thanks! Yes, I don't mind if the batteries push the weight of the vehicle over 35 pounds. If I ever have to fly somewhere I can always take the batteries off and put them in another suitcase. I just wanted the bike, motor and controller to be pretty close to 35 pounds. Southwest airlines is pretty lenient with a 3-4 pounds.
The problem with the Dahon's and frontwheel hubs is that the front hub is not a standard size.
I am looking very intensely at the following motor: http://www.hobby-lobby.com/brushless-axi4130.htm
It is a high rpm motor, however and needs some stepping down. That part would not be to difficult to manage - I have a friend who has a machine shop in his garage. The trouble is I would like the power to the rear wheel to be applied on the left hand side of the bike so that I can leave the 7 speed derailleur alone and not add more mess to the right side. Have you seen a "part" that is available off the shelf to do this?
There is a bent that already has one of these installed (see: http://www.wisil.recumbents.com/wisil/shumaker/default.htm) The motor is light but expensive but this guy claims that it is durable. I have seen other posts online that have made the same claims. I don't mind paying $200 for a motor like this but the killer is that the controller is almost as expensive - they are all radio controlled airplane/toy parts so they are super light, super expensive and have very little demand for the parts. There are other less powerful motors, which this guy said would probably work for me, but these motors are not rated as clearly as the motors I have been looking at for ebikes. While I understand some about electric motors I understand virtually nothing about controllers. I am sure it would be possible to find a suitable controller for this motor for $60-100 but I wouldn't know how to go about doing it. It also seems that this motor is capable of taking a variety of voltages which could be helpful - 24 volt battery packs are much cheaper than 48 - but I am not sure what this would mean for performance. This guy has solved the problem of the transmission but his solution was very labor intensive.
Yes, the "hybrid" bus/ebike solution is a good solution. That might get me through for a few months. I want to apply for a job in a shipping company and the hours of the shift I want are 10 pm to 2 am. There is a 9 pm bus to get me there but no 2 a.m. to get me home Still, the bus might buy me enough distance so that my ebike can make it until I can afford bigger batteries. At that point I can save almost half an hour riding my ebike directly to work - the bus takes more than 50 minutes to make what I could do in about 30 - by riding the bike i can take a much more direct route.
Another option, with such a light motor, would be to use it to power the front wheels. Again I would have the power transmission issue, unless it is possible to put a freewheel on the dahon front hub? I suppose, for the time being I could pick up a second hand mountain bike to experiment with, and then, when things were working right could start transferring to the Dahon. Another issue with the Dahon is that total weight on the bike is not supposed to exceed 215 pounds - I am already 180. There are also not many places to string SLA batteries either.
Then again, there is this electric scooter: http://cgi.ebay.com/Black-SUPER-TURBO-800WATT-ELECTRIC-MOTOR-SCOOTER-nt-gas_W0QQitemZ330272315579QQcmdZViewItem?hash=item330272315579&_trkparms=72%3A1207|39%3A1|66%3A2|65%3A12|240%3A1318&_trksid=p3286.c0.m14
that claims to have an 800 watt motor. It seems small also...I will look into where the parts of this come from, or just break down and buy one and skelatonize it for parts

The bottom line on all of the chain driven options is that, if I want to stay out of the way of the present derailer/gear system I have to get creative on the transmission side of things.
Thanks for the suggestions! But by all means, do not let the think-tanking stop

I am intrigued by the idea of using motors like this because, if they prove to be durable and suitable, they can be used in a lot of ebike situations.
Yours truly in the battle for a clean environment,
T