Thanks

If you have the original sanguino board, check here:
http://www.solidoodle.com/how-to-2/troubleshooting/

You will likely need to set vref below the extruder value recommendation.

I have been trying to find a post on the forum and/or on wiki and can't find anything that tells me how to do the Vref upgrade and/or about new stepper drivers SD8825.  Is there a how to out there, hate to ask but I have been looking for 2 days now. 

As you can see this problem has been going on in most up my prints (see uploaded picture)

Boz,

I had that happen to my old extruder (default) and I think it was because I did not tighten the assembly down enough.  That was when I decided to get out my E3D and upgrade to that.

Thanks!

Looks like you didn't seal the piece properly

Did you heat the piece and tighten it at 300°c?

Thats a pic of the stock 'bighead' nozzle attached to a PEEK barrel - if he heated that to 300°C it would be a pile of molten plastic and have outgassed nasty stuff.
Being a PEEK barrel, it doesn't have the same expansion issues that the alu/stainless of an E3D has. You only need to heat the OEM Hotends to enable to solidified plastic to 'let go' to unscrew them using the stock plastic-melt temps (so 165-195 PLA/ABS) - screwing them on is done at room temp.

But dead right re the E3D - that one, you want to heat soak to 300 and nip up...

Anyone have an idea if this is burnt plastic on my stock hotend nozzle?

It is. As techbuilder elluded to, looks like your (stock) nozzle wasn't tight on the barrel.

Did you heat the piece and tighten it at 300°c?

Anyone have an idea if this is burnt plastic on my stock hotend nozzle?

Link to Picture

I upgraded to an sd8825 at the same time I installed an E3D and still has to turn down the vref, but in theory that alone would have helped with the moire.