Spoiler is the problem I had.
So now that I know how to install Forge for MineCraft 1.6.1, I'm going to share!
1. Download the latest Forge Installer build from: http://www.minecraftforge.net/forum/index.php?action=files
So you know, I'm using build 8.9.0.762 or higher.
2. Install by double clicking the installer JAR, select Install Server. You will see a red box, click the button with three(3) dots to browse to an empty folder (or your server folder that you are going to use).
3. Press OK
4. Create a run.bat file
5. Using a text editor like Notepad, I use Notepad++ because I can and it works, open the run.bat
Enter:
java -Xms1024m -Xmx1024m -jar minecraftforge-universal-(Version).jar
NOTE: if the server does not run, and the command window closes on you, on a new line in run.bat type "pause" without quotes.
6. The server will now generate more files and folders, including the \mods folder for your mods to go.
NOTE: I did all this in an empty folder, then copied what I was missing in my actual server from the folder I installed Forge into, keeping in mind to replace the minecraft_server.jar file with the one Forge downloaded for me to assure working status.
7. Edit your server.properties file as normal, for those doing totally fresh servers, and remember mods in the \mods folder.
Enjoy.
IF YOU HAVE TO MODIFY THE MINECRAFT SERVER 1.6 FILE YOU ARE DOING IT WRONG!!! This includes changing it from "minecraft_server.(version).jar" to "minecraft_server.jar". DO NOT DO IT!!!
Thanks to luacs1998 for his help
and LexManos for fixing the Forge Build so that it worked.