So, I did it! I know, I've made 100's of pairs of socks but this is a new construction and it really used a lot of brain cells but I am so happy to say it worked!
The gusset does not run up the sides but rather runs up the sole of the foot from the arch to the heel.
The heel is turned and then the heel flap is knit decreasing all of the extra stitches!
One more fun step left
and I hope to accomplish that beginning tonight!