Here is what I discovered and the work around.
Yes, MOSS only has Date and Time data type, even though you can format that field as Date Only, it is essentially only a format of a Date and Time value. When working with MOSS Workflows based upon values in a MOSS Form Library, you are working off values in the Form Content Type, not values actually stored in the XML of the InfoPath form. Also there is no "out of the box" way to format Date and Time values in MOSS workflows using the SharePoint designer. If I wanted to start writing code again, I could install VS.NET and write a custom workflow, but I don't have the time for such things.
Essentially what I ended up doing is creating a new text data element (strDateFrom) in the form that stores a copy of the value in the Date field (DateFrom) in the same form. This new field is updated anytime the DateFrom field is updated in the form. I then promote both the DateFrom and the strDateFrom fields to MOSS and then use the strDateFrom value in my workflow.
Kind of a "hacky" work around, but it works.