Yes, you have the main site gloconj.com and when you were in the network admin, at gloconj.com/wp-admin/network/sites.php, you added a 2ndary site in "/directory/"
There is going to be a WP-Admin area for the main site at gloconj.com/wp-admin, and then there's one for the "/directory/" site. That's what I mean by different sites. For a user in question, were they awarded a badge in gloconj.com/directory/ that they don't see when at gloconj.com ? or vice versa?
"Both are in the same network... Badge OS is recognizing them in the netwok - but they are just showing up blank for badges earned on separate sites within the network."
Sounds exactly like what I said above.
This part looks suspect though:
<img class="wp-post-image" width="50" height="50" style="display:none;visibility:hidden;" data-cfsrc="http://gloconj.com/directory/wp-content/uploads/sites/8/2013/06/sample.jpg">
<img class="wp-post-image" width="50" height="50" src="http://gloconj.com/directory/wp-content/uploads/sites/8/2013/06/sample.jpg">
I am not sure where the data-cfsrc attribute is coming from, nor the inline styles for display:none and visibility:hidden. I have scraped the source code for possible locations of that in output but haven't found them. Do you know if those are somehow provided by a different plugin? I know the 2 inline styles would definitely play a key role in not showing them to people.
As an aside, I filed an enhancement ticket on GitHub for network wide widgets for badge display. We'll see if they make it into a future release, if indeed the widgets aren't well suited for multiple sites in a network.