Update....

I found a link - (http://www.sqldev.org/sql-server-integration-services/raiserror-does-not-cause-sql-task-to-fail--why-5333.shtml)

suggesting to change the SSIS connection mgr to ADO.net.

I changed from OLE DB & error conditions detected in csp's are now correctly setting...

Upon further research I have determine that under error condtion 2 - the SSIS task does receive the error code in the @rc variable however it now appears the RAISERROR...