Thank you all for your input. I have done some more testing and found the following tricks that helped:

1) Brush (just as the instructions suggest) rather than spraying the 50/50 mixture put enough Balsarite on the surfaces to create a "layer" that allows a stunk adhesion (at 220 degrees which is just before gas bubbles form.)
2) Sand the Balasrite with 320 grit before the Monokote goes on. This creates a "glass smooth" surface.
3) Iron on the Monokote about 15 to 20 minutes after you apply the Balsarite. It dries to touch in about 5 minutes. Don't wait overnight or longer.
3) By thinning the Balsarite you will create a much smoother surface for the Monokote adhesive to grab. Balsarite (out of the can) is pretty thick.
4) Your iron should should not be more than 220 degrees
5) Use an iron rather than gun. You get better temperature control.
6) With Balsarite you get MUCH better adhesion and no bubbles! But if you don't use it correctly.....it sucks.