FOUND IT!
In Ultra Hal's options, Speech, "Use Speech Recognition"
If you remove the check from this box, it will THEN wait until you press ENTER.
That's what I'll do to fix mine for now, however I would like to eventually have speech recognition on and have it still wait for ENTER on the keyboard input, hopefully there is a way to do this.
On a related note, In UH's Options, Speech, when you click on the "Select SR Engine...", what recognizer does everyone use? I have two choices...
1. Microsoft English Recognizer v5.1
2. SAPI Developer Sample Engine
I have the "Microsoft English Recognizer v5.1" selected.