Well I started the morning changing loads. Didn't try a resistive load, just different. a single speed blower motor. Probably not much less noisy. It did reveal a few things.
Thank you and everyone for your input. I think I may have it sorted out. Unfortunately, it shows my lack of experience/technical knowledge.
I think my issue is that I had DC on the brain. When I measure the VIOUT on AC mode, it appears to work properly. However, it measures 0v with no passing current. When current is applied, the voltage goes up. Measurements show that it is an accurate 55mv/amp as well.
To my way of thinking this is right because VIOUT goes the same direction as the measured current. I think the only reason any VIOUT was showing with the drill is because of noise or possibly the variable speed circuit. With the blower motor that I tried this morning, there was no reaction from VIOUT when measuring DC but when measuring AC, the voltage was right on.
How does this theory sound to more experienced designers?
Unfortunately, this thesis requires a version 3. Which, will have to include a rectifier and an op amp.
Again, thanks for all the help. Any tips, input, or advice is always appreciated.