After doing a little more research i never really found the answer. However, I did find out that MFR (MineFactory Reloaded) has its own Rubber that is compatible with IC2 rubber. There is a config somewhere where you can turn off MFR rubber and just use IC2 rubber and i BELIEVE what is happening is that this setting is being set by default in tekkit lite. I am at work right now and can't double check my theory.
FYI every recipe ive seen now that has rubber bars in it seems to be able to be replaced with IC2 rubber......which is why when smelting IC2 rubber it goes straight to plastic instead of to bars first. (just theorizing again)