Sounds like leafcutter bees. Is the damage similar tho the one in these pictures: http://www.ext.colostate.edu/pubs/insect/05576.html

I leave them alone and have them eat what they want. They do not grow in large numbers so the problems is cosmetic and limited.

There are some beetles that also cause this type of damage; you would have to instecpt at night for evidence of them since they are nocturnal pests. You can get rid of any leaves and decomposing plant material where they like to hide during the day. Their damage is different from the bees sa you can see from the pictures in here http://www.walterreeves.com/insects_animals/article.phtml?cat=21&id=903

The brown spots only on the bottom of the leaves usually indicate some form of fungal infection. Can you post some close-ups of the affected leafs?

If the problem is limited to a few leaves, I would not worry about it much. Try not to get the plant leaves wet (water the soil) and water very early in the morning only so the sun can evaporate any moisture from the leaves. Try to water again when the soil starts to feel almost dry and do not pack the plants too close so air movement can diminish humidity levels.

Leaves with crescent shaped holes: The Cranberry Rootworm, Rhadopterus picipes, chews holes in the leaf, some of which are crescent shaped.

Weevil damage is almost always on the edge of the leaf so that rules them out.

Whitish specks on the upper surface of leaves and varnish-like brown spots on the bottom are symptoms of Rhododendron Lace Bugs, Stephanitis rhododendri, and Azalea Lace Bugs, Stephanitis pyrioides, small insects with transparent wings on under-surface of leaves.. This insect hatches early in spring as the new foliage begins to mature and its numbers may build to damaging levels with successive generations. Lace bugs reach their peak in late summer and do their worst in sunny, exposed sites. Spiders are important predators of lace bugs and since they shy away from sunny, hot places, plant your azaleas where there is some shade. Insecticidal soap, horticultural oil, or a systemic insecticide may spare your azaleas the damage if applied in spring when the first hatchlings are noticed. Care must be taken to spray the lower surfaces of the leaves where the lace bugs live. Moving a plant to an area with more shade may alleviate the problem.

Here is a link that might be useful: Problems and fixes for rhododendrons and azaleas.

Definitly not Cranberry Rootworm. Most likely Weevils. Thanks for all of the great information and resources you have provided. The brown spots could just be inherent to the type of rhododendron I have. COuld also be fungal. I will be keeping a close eye on it over the next few months!
Thanks again.

grdn, weevils leave pretty distinctive notches along leaf outer edges - not hard to identify. A photo of leaf and leaf underside would help.

Just a tip, you say you sprayed it often with a mixture of soap, hot sauce, mouthwash and water with no luck at stopping whatever your pest could be....If your spray isn't deterring anything, stop using it:) Hot sauce and mouthwash aren't meant for rhododendrons, always that chance you are causing some foliage damage - someone posted a while back about tabasco for deterring squirrels and it appeared the vinegar and salt in his pepper product caused more harm than benefit.

Here the common spot or blotch maker is mildew. This is murder on rhododendrons and - since I cannot be bothered to spray these with multiple fungicides several times each spring - has caused me to pretty much discontinue planting them. If you are starting to get that your plants may be defoliated and killed after a few years or may live with it for some time, becoming just somewhat gaunt - or anything between (different varieties vary in how badly they are affected).

Damp soil conditions can cause a different kind of spotting on certain kinds. Web pages and guide books show and describe various rhododendron afflictions. If you start to have a significantly bothersome mystery problem you can also seek assistance from your nearest state cooperative extension service office. Look for contact information on the web, using the name of your state with "cooperative extension" after it.