Thanks Shorena, this makes sense now. I did not know you could not import encrypted private keys into the core. Do you know how to import a non-encrytped private key into the core? Or is this also not possible. If it is do you need to decrypt the core wallet first?
You can use importprivkey (write help importprivkey in the dev console for the details of the command) to import a key in WIF format[1]. The wallet must be unlocked in order to add the key to the file yes.
[1] https://en.bitcoin.it/wiki/Wallet_import_format
Great info Shorena, this definitely clarifies many gaps in my bitcoin knowledge I made another paper wallet without the BIP 38 encryption added in. The private key states "wallet import format" WIF. Now I can see why I had problems importing my previous paper wallet with the BIP 38 encryption because the core client doesn't allow you to import a private key like that. blockchain.info worked but the core didn't. Thanks again!