Ok so I chucked the rewrite all together and went with a $_POST solution. It works really well and no slop in my URL. Here practice-areas is the taxonomy and the link pulls the taxonomy-practice-areas.php template file. On the destination (or here in the template file) I can modify the $query_string to further refine the search to a particular post-type. Yeeeee-ha!!
Put in Destination Page:
<?php
$myvar = $_POST['formVar'];
query_posts($query_string . '&post_type=".$myvar );
?>
Put in Originating Page:
<!-- The Form: Put this form somewhere on the page: -->
<form method=post name="post_form" action="">
<input type="hidden" name="formVar" value="">
</form>
<!-- The URL: Here I am assigning the Destination URL to a variable. This can be whatever you want the destination page to be. -->
<?php
$dest_url = get_bloginfo("url').'/practice-areas/'. $category->slug;
?>
<!-- The Link: Here we are assigning 'portfolio' to 'formVar' and setting the form 'action' to the $dest_url value. The title stuff is irrelevant here-->
<a href="" onclick="document.post_form.formVar.value="portfolio"; document.post_form.action ='<?php $dest_url; ?>'; document.post_form.submit(); return false" title ="<?php sprintf( __( "View all posts in %s" ), $category->name ); ?>" >