Stephen,
thanks, layer package works great.
What version of ArcGIS are you using? I converted with 10.0 sp3 and 10.1 beta and they both translated the same way and I believe the translation is correct. I'm able to click the URL field while inside GE.
Attached inside the zip are the 2 versions of the KML I created. Can you have a look and verify this is the result you want?