I have sorta answered my own question.

Taxcut adjusts the NYS tax return incorrectly, so my tax goes up with an
adjustment. I can't wait to see what they have to say about it.

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negative number for the accrued interest.
I have that right, don't I?
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The reason I ask, is that TaxCut won't accept negative interests. Instead
it has you check a box on the bottom of the 1099int entry form which allows
you to enter a number for the accrual. It says to enter a positive number
when you buy a bond with accrued interest, but when I do that my taxes go
up, when they should go down. I think I have to enter a negative number.
I contacted customer service, but I don't think the guy there understood the
problem, because he answer was odd.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >