Category list not displaying product

Hello
I am following the instructions in the documentation for creating a category listing. I have tried to do this about five times, but whatever I do, I cannot see a created product in the category on the front end.
Here is what I have done:
1. Created a category listing menu item.
2. Saved it.
3. Clicked on the options, then created the associated products listing module automatically.
4. Set Sub elements filter to "All sub elements".
5. Set "Show the number of products" to "yes"
6. Set "Only display categories with products" to "yes"
7. In the associated products listing module, I have set Sub elements filter to "All sub elements"

So now a category list menu item is created, in which I see the name of my created category 'Mens clothes(1)', indicating that there is 1 item in it. However, when I click on Mens Clothes(1), I see the category listing for Mens Clothes and it does not have any products in it!!!????

I have tried every combination of the options I can think of but still no joy.

Does anyone have any suggestions as to what I'm doing wrong and how to fix it?

Thanks for any help

Diarmuid