Wanted to share the results for any future readers. Palal was correct. We had no difficulty checking luggage 6 hours before the flight. We did have difficulty finding the baggage drop area (thetheyn being redirected to a separate collection for US going flights.
Getting thru security/x-ray took some time. The airport has a great system allowing 3 stations for you to put your items in nine for each machine but the metal detector was so sensitive about 70% of the people needed additional scanning.
We spent the next few hours in a lounge then headed out when the gate was assigned. Passport control was relatively swift. BUT the line at the gate was verry long because that was where the additional questions ( who packed the bags, have they been in your control, etc.) were finally asked. They also asked details about how long we'd been in Lisbon, etc. With only 2 agents handling the entire line, it took close to an hour. The the plane was delayed for "operational reasons.".
We didn't need all the extra time but I'm glad we had it because we could be calm about all the waiting/delays.