Alright,

After a bit of hacking and slashing ultimately getting irked with a
botched VS.NET install I went back and studied Jim Brain's TCPSER4j
program.  Below is what I did and successfully connected in and out of
KEGS using this "Virtual Modem".

What's needed:
KEGS 0.91 - http://kegs.sourceforge.net/
Jim Brain's TCPSER4j program -
http://www.jbrain.com/pub/xplatform/serial/

Steps:
1.) Start KEGS (Hopefully you already got GSOS installed and running as
this isn't a HOWTO on running KEGS) and hit 'F4'.
2.) Under "Serial Port Configuration" set the following items:
Serial Ports = Only use sockets 6501-6502
Serial Output = Send Full 8-Bit data
Modem on port 0 (slot 1) = Simple Socket Emulation Mode (printer)
Modem on port 1 (slot 2) = Simple Socket Emulation Mode (modem***)
3.) Save and restart KEGS just in case
4.) Unpack TCPSER4j and change the config.xml file with these changes:

Comment out <Modem type="rs232" device="COM1" speed="38400" to make it
look like <!-- <Modem type="rs232" device="COM1" speed="38400" -->.
Then uncomment out the <!-- <Modem type="remote232"
device="hostname:port" --> to <Modem type="remote232"
device="localhost:6502"> (or whatever IP address the KEGS emulator
runs).

5.) Start TCPSER4j with the run.bat command.  You'll see it initialize
and wait for the emulator to connect.
6.) Start KEGS and run ProTerm.  Set the system to use a Null-Modem
(doesn't need the CTS/RTS as you'll have a real-enough modem running)
using the Apple //gs Modem port.
7.) Go to online and Configure 57600-8n1 with whatever terminal
emulation you want and then set "Offline" to "Online"
8.) Type ATZ and you'll get an OK reply
9.) At this point you have a fully working modem to the emulator that
will connect to any Telnet system or another bbs.

I recommend boycott.no-ip.com:9999 by typing ATDT boycot.no-ip.com:9999
and it will connect.  Feel free to use the PROTERM Emulation under
ONLINE-Preferences. (verified as I typed this)

Anyways, as the Nutra-Matic would say in HHTG, "Share and Enjoy!"

-Don