Ok.., I can answer my own question. After a very nice message exchange with the author of SatPC32, DK1TB, and some prodding by K8GI (Thank You, gentlemen) I have figured out the procedure.
1. Make sure that you are using the 706 version
SatPC32_IC-706/7000 found at http://www.dk1tb.de/downloadeng.htm
2. The 706 version downloads with the *assumed* radio address for the 706 as $60. The default address of the 706MKIIG is $58. The address used by SatPC must match the actual radio address. You may check(or change) your radio address at Set Mode item 34 'CI-V ADDRESS'. To set the radio address that *SatPC* will use (the preferred method), click through the following sequence: 'Setup'->'Radio Setup'->(click down arrow by 'Model')->'Addresses' at that point you will see the addresses displayed as well as 4 active up/dn arrow buttons beneath and an 'Addresses Ok' button. Use the up/dn buttons to set *both* addresses to your radio address (probably $58). Do not fret about the bar that is adjacent to the 'Icom' selection or the arrow button associated with it, ignore it. After you have set both addresses using the small up/dn buttons, click the 'Addresses Ok' button, click 'Store', restart SatPC, enable CAT control, you should be done.
3. It may be necessary to co-ordinate baud rates between the 706 and SatPC. The default for the 706 is 'Auto' (Set Mode item 35 'CI-V BAUD'), and usually works fine. The default for SatPC is 19.2Kbaud, and that usually works fine with the 706. If the addresses for SatPC and 706 match, CAT control enabled, and your CAT cable good, then suspect the communications rate. SatPC's rate is determined in much the same way that it's adressing is:
'Setup'->'Radio Setup'->(click down arrow by 'Model')->'Baud'. Select baud, Store, restart.