I've posted your questions and comments below inbetween "quotes". My responses are below those.
"One of the main difficulties seems to lie in plotting gamma log data between wells. Density Log information plots beautifully."
Could this have something to do with the automatic scaling in your dataset? Is it possible that there are null values in the dataset that are not being filtered out?
"To officially state my first question, can the program convert P-data into lithologic or stratigraphic data, or do the lithologic and stratigraphic boundaries need to be determined independently by the program user?"
RockWorks does not have any tools for converting P-Data to Lithology or Stratigraphy. The lithology data would have to be typed into the program, or into another program such as Excel and then imported into the program. The user can enter Stratigraphy in a similar manner, or the user can visually pick their Stratigraphic contacts using the stratigraphy picker (under the Stratigraphy menu as well). I know that there are some programs out there that have tools for automatically determining lithology types based on P-Data. One that comes to mind is WellCAD. Other users might have other suggestions.
"We also have a problem with converting our latitude and longitude coordinate data into the required UTM format. We have followed the instruction manual and the process either results in a response of zero for UTM, no response at all, or it proceeds to change the coordinate data for all of the other wells."
We will have to look into this one. At one point, there was a bug with this tool, but it should be fixed if you are using the most recent version of the software (what version of the software are you using?). Also, if you are using the automatic tools for picking your UTM Zone, you might try manual to see if you get better results.
The Map --> Adjust tools in the Borehole Manager will attempt to convert Lat/Long data in ALL of the boreholes to UTMS. If you have blank Lat/Long values in some of your boreholes, it would not surprise me if this would corrupt the Easting and Northing information in those boreholes. If you only want to do the conversion for 1 borehole, then you should do the conversion somewhere other than the Borehole Manager. There are some tools in the Geological Utilities for doing this type of conversion (see the tools under the Coords menu).