I have it fixed. I found that in the captcha.tpl and changed it. Thanks brian! I started with...
{if $filename == 'index' || $filename == 'hosting' }
That will allow it either file. I ended up expanding this to allow for all pages that have the captcha so that version 2 would work. They kept pulling version 1 on other pages such as contact, register, supporttickets, etc. Here is what I ended up with...
On the first one...
{if $filename == 'domainchecker' || $filename == 'index' || $filename == 'hosting' || $filename == 'submitticket' || $filename == 'register' || $filename == 'contact'}
On the other two...
{if $filename == 'index' || $filename == 'hosting' || $filename == 'submitticket' || $filename == 'register' || $filename == 'contact'}