Ok, the Manufacturer just called me and we had a nice conversation, but I don't entirely agree with her. Here are the highlights of what she said (and forgive me if my recall isn't so good).
1) She believes it was an overheating issue and not a problem with the HGII. Her reasoning is that it is a contact miticide and as a result it would not be likely to kill an entire hive in the fashion mine were.
2) In the development stages, she said that she personally treated over 250 hives of a commercial beekeeper and never saw any hive kills. And that many of the larger commercial guys, even one near me use it and are pleased with it. She mentioned that with HGII that there was good mite knock down with one two week application and subsequent good overwintering success.
3) With HG/HGII there is always some incidental bee/brood killed around the strips. The strips being saturated with the product, those bees that contact it when it is very wet will be overcome. Queens can also have the same happen to them if you are unlucky enough to apply the strip where she is located. This makes sense and is what I saw surrounding the strips themselves.
So in the end this what I believe happened (and BTW, I told her this)...I believe it was overheating that did these hives in. But I also believe it was the presence of HGII in those hives that caused the overheating situation to develop. HG/HGII is not as "bee friendly" as it is advertised to be. Obviously, my bees did not like it in the hive, and its presence alone caused them to exit the hive or in some way become unable to perform hive cooling duties.
So to those who are thinking of using it, what I would suggest would be to open the entrance full on, open the SBB, or as previously suggested, in some way crack the hive open a little (taking care not to incite a robbing situation) for extra ventilation. I however, with my losses will never use the stuff again and will be tossing what I have left.