Below is a photo of my super scientific test setup.
I placed that about 3 feet in the air. I set the failsafe to full motion in one direction. I walked away from the setup with the transmitter to see what range I got before the fail safe kicked in. At about 75 feet the servo started moving erratically. I then walked back to the setup. Then I started moving the servo both directions while I walked away. This time I got to the end of my yard (maybe 100 feet) and it was still moving as I gave it commands. So, I can't seem to nail down an exact range.
I also put the setup just inside my house and tried it through the sliding glass door. I got 20 feet away before it lost all signal. This is not really a useful test, but it still seems a bit short if you ask me.
I guess I am going to contact KO and see what or if they can do anything for me. This setup has exactly the features I need, and I really hope it is just a problem with my specific transmitter, not something else.