Hi Jim,
It sounds like you are right on target with your problem. The difference between
irons and woods is that
irons are designed to work best when you strike down on the ball where as you need to 'sweep' woods. Try to not come in so steep with your driver - you do not want to hit down on the ball. Instead, you want to catch the ball as your driver is starting to come back up on the swing plane.
The set up you described is not to far off. When hitting driver, your ball should be set up just inside your left heel. The equator of the ball should be at the top edge of your driver (1/2 of the ball is above your driver face when the sole rests on the ground).