Is headset required?

I like to make the squelch on the uplink VFO the maximum, so nothing should come through there (unless you have a neighbor who is also trying to work the same satellite). You are correct about seeing QT when you transmit - that signifies you are using a tone of some sort while transmitting.

 

My beam is vertically polarized, not actually aimed at the satellite. I'l have to wait until the handheld antenna is finished and give it a try.

 

Bingo! SO-50 has a much weaker downlink than AO-91/92 did. And I have seen an extra foot or so of coax on a homebrew handheld antenna make a difference with receiving SO-50. So I would keep it as short as possible and use low loss coax like LMR-240UF or Wireman #118. Good luck!