Earlier this evening I tried the cheese. Much better. I also did "palms up". It also worked out a lot better.

I tried the sit and stand with no words. Worked pretty good! The down - not so much! I am not even worried at all about down at this point though. Just thought I would give it a try. We'll try down at another time.
So my next question is, once I practice it this new way a day or two (without saying the word "sit") how do you eventually go into making her sit without bait?
In obedience class I DID NOT like the way they taught sit, which is another reason I am having a hard time with it. I tried to find a video, but I can't. You'll have to live with my bad explanation.
When the dog is standing you say sit. If the dog does not sit, you:
1. Take the dog by the collar with your left hand
2. Tuck the dog's tail under with your right hand, lift up the dog's rear, and place it into sit position.
3. Tell the dog it's a good boy or good girl.
They say this method is better than pressing down on the hips. I still hate this method though, because it is just too Cesar Millan-ish for me.

Terry taught me the bait method, but I have no idea how to transition her to get her to actually sit without being baited.