I found that if I changed the mnet in the url to xmlrpc that I could get from moodle to mahara and it would authenticate.
The orginal url that my moodle server block produced was:
http://mydomain.org/mahara/auth/mnet.land.php and then a bunch of token stuff
So, I just copied and pasted the directory and contents /mahara/auth/xmlrpc to /mahara/auth/mnet and voila, it worked. So, I think this workaround made the moodle block point to a place that existed. This isn't ideal but it works. Not sure if it is moodle's fault for having a block point to the wrong place or if it is mahara's for not having the directory there that moodle's networked server block points to or mine for not knowing where to fix where it points. At any rate it works for now.
It doesn't explain the part about the published key that doesn't show up.