Are leaves opposite? More close up pictures from different angles might help in identification.

more pics. higher rez.
Thanks for your help...
Ray

Here is a link that might be useful: {{gwi:1347231}}

pic2: http://dl.dropbox.com/u/30941855/weedpic2.jpg
pic3: http://dl.dropbox.com/u/30941855/weedpic3.jpg
pic4: http://dl.dropbox.com/u/30941855/weedpic4.jpg
pic5: http://dl.dropbox.com/u/30941855/weedpic5.jpg

Perhaps one of Diodia species.
Chlorosis (light color of the leaves) might develop due to different reasons.
We will know for sure if you let couple of plants to go to flowers and post pictures here.

Here is a link that might be useful: Diodia

One of the reason for chlorosis particularly in Diodia might be a specific virus.

Here is a link that might be useful: Chlorotic diodia

This started in my lawn last year and has come back in more spots this year. Looks like the best way to get rid of this, without destroying my lawn is by hand. Any other thoughts?

I would yank it by hands too.

Your links:
1
{{gwi:1347232}}
{{gwi:1347233}}
{{gwi:1347234}}

It would help knowing what zone you are in, and where you are. You can find your zone here. Adding it to your profile will cause it to appear next to your name automatically when you say something on these forums.

I'm not sure what you have there, but compare your weeds to variegated phytolacca (pokeweed.)

The Plant Hardiness Zones would be of little help since all they tell you is what plants are likely to survive a normal winter. Within each Plant Hardiness Zone you have many different soils and growing conditions during the growing season. What would help is a state or a region on a state.

Thanks, but that's what I thought I said and meant by and where you are.