ok, I removed the feature Class to Feature Class portion of the Model and the Intersection portion, writing to in_memory worked.
I then re-added the Feature class to feature class tool from scratch and viola it worked!!!!!
perfect!
is there a way to delete the in_memory after each intersection process or do I have to wait until the whole process has completed, I have to run this for 25+ point files and will have a couple of multi million record counts.
and I still dont know why since we installed 10.5, I get the warning message (in yellow)but it keeps churning along.
Thanks everyone for the help.
Brian