Following the suggestion in this stackexchange thread... I cleared credential storage by going to Settings -> Security -> Clear credentials
Now I'm able to set a screen lock = Swipe
As in, all those screen lock types that were gray'd out are no longer gray'd out.
And I'm finally able to add the Camera widget to the lock screen
Holy crap... what an ordeal that was.
I wonder how the heck my credential storage got dorked.
Oh well... moving on.
Thanks for all your help/suggestions 06Silverado
Having another set of screen-shots to compare/contrast, helped alot.