LO1 on D300
Stacey, finally had a chance today to see if I could replicate your LO1 findings on my own D700. Here are crops of the SOOC JPEG's shot at f/5.6 at 1/400 sec for ISO 200 and 1/200 sec for ISO 100 (LO1) using our mutually favorite picture control, D2x Mode I, same WB settings.
Basically I can see that salmon color effect that you showed in your own portrait example.
What about the RAW's I wondered? Here are both images processed from RAW through Lightroom with a linear tone curve, -80 Highlights, +11 Blacks, Color NR +10/50/50. I disabled Lr sharpening, vibrance, contrast, and clarity so these are a bit flat and relatively baseline.
Much better. There are still some color differences in the recovered sky highlights (highlight clipping is a known weakness of LO1) and a slight tonal shift but at least the salmon color caste on the skin is not evident. Did the RAW's for your example reflect the same?
Perhaps the salmon color shift is something uniquely related to the way the JPEG engine or the D2x Mode I picture control interacts with LO1. Further testing with other picture controls would reveal more.