The processEffects() calls processEffect() for each effect. ProcessEffect runs the "DMGO" effect and because I removed the effect in the processing of the DMGO if the PC died in manager_action_damage.lua when the processEffect() continued trying to use the effect it would bomb.
I ended up not removing the effect because of all the hackery I had to do to make it work... I did get it working it just seemed a bit over the top and I really dont want to override CoreRPG unless I have to...