Absolutely Fantastic!!!! I was able to reference the PLSS data from the Arc Resources and got the labels to show up and be dynamic as I had hoped.
Using the system described, I got that much done.

So the next set of questions:

1: Is there a way to individualize the text so as to be able to stack it according to certain parameters?

Thus: that the Township would stack, but the Range will not?

2: Truncating either right or left so as to exclude the Township on the Range notation, and vice versa for the Township notation?

3: Is there some kind of system to create that style like a script, or other template that can be loaded into or created for the custom Reference style to allow the above question?

4: Will any of this customization show up on Arc View licensed machines if this is created on an Info license? (We are obtaining an Info license for one machine but have multiple Arc View license machines.)

So far you guys have been a fantastic help and thank you mightily for this! This is greatly enhancing the maps I create.

Thank so very much!

1. Dynamic stacking of text in the grid labels is not possible at this time. Feel free to submit this to ArcGIS Ideas to get make sure it is considered! (http://ideas.arcgis.com/)
2. Dynamic truncation of the labels is not possible either. You could get around this by creating a new field that only contains the part of the label you want to show and use that for labeling the grid.
3. If I understand the question, no. Unlike feature labeling, there is no scripting environment for grid labels.
4. Custom overlay grids are available at all license levels. That includes creating them, editing them, and using them. If you make one with an ArcInfo license, it will still work just the same with an ArcView license.