Below is some SPS documentation on how the SEARCH should perform and the
STRANGE results I am getting. Can anyone help?

SPS Documentation:

By default, SharePoint Portal Server includes an implicit OR between the
words that you use in a search query when compiling results. This means that
documents that contain all the keywords rank higher in a set of search
results, but the results may also include documents that contain only one or
a few of the keywords.
Look for two or more words at once by using the AND operator.
Example - type sports AND events to find documents that have both the word
sports and the word events anywhere.
Look for words that are close to each other by using the NEAR operator
instead of the AND operator. When you use NEAR, the closer together the
words are, the higher the rank of the page, so the higher it appears in the
list of search results.
Example - type sports NEAR events to match documents where the word sports
is within 50 words of the word events.

Examples:

hazcom OR cwp 59 hits
hazcom AND cwp 59 hits
hazcom NOT cwp 186 hits

work OR permit 133 hits
work AND permit 133 hits
work NOT permit 179 hits

Logically the OR search should normally give the most hits, the AND would
give fewer and the NOT would give the fewest, in our case. In every example
I have found that the AND and the OR search give the same results. I will
believe an AND search when I see it demonstrated.