I decided to forge ahead and see what sealer coats would produce. After two, the problems seems to have been addressed. I think with all the sealer and lacquer coats it's going to get, I should be OK. If not, I'll just have to re-do that area or the whole neck. Now that I know it's the urea reacting, I think I might be OK. Thanks all! If you have any curiosity, I've been doing a blog about my guitar rebuilding adventures...
http://lowbrowguitars.blogspot.com/