Working with category and product layouts in 1.5.6

I have a new website that is still in development, and thought it would be a good place to test the latest build 1.5.6.

Upon installing I found that the display of the products went from 2 columns, back to 1 column. However the settings in Display -> Content Menus still clearly says 2 columns.

I know there is a new feature for layouts for the products and categories. How does that play with the settings in Display -> Content Menus? Is what I found a bug? Or is there a setting someplace I need to get it to honor the old 2 column layout?

Any help would be appreciated.

That did the trick. Thank you for such a quick response.