creating catalogs

I cannot create a catalog for either the CSharp or StarterSite from the CS Catalog Manager on my development server. In Tasks there is no option to create a new catalog and the menu item under File..New is grayed out even though the connection was opened successfully

Here's what I did (e.g. for Catalog Service-did same for Orders,Marketing and Profiles). This was not the ideal security scenario but I am just trying to get this product up and running so I can show my boss how it works.

1. Installed MSCS2K7 pre-requisites
2. installed SQL2k5
3. Installed MSCS2K7 on my windows 2K3 box
4. unpacked both the CSharp and StarterSite
5. Created a local admin acct for MSCS2K7 (call it locadmin) which I used for all 4 services
6. Assigned write permissions for locadmin to CatalogAuthorizationStore.xml
7. Assigned write permissions for locadmin to temporary ASP.NET folder
8. Assigned write permissions for locadmin to Windows temporary folder
9. Created CatalogAdminGroup in Computer Management (Users)
10. Added locadmin to CatalogAdminGroup
11. Used azman to add CatalogAdminGroup to CatalogAuthorizationStore Role Assignments for each role name.
12. Gave locadmin dbo priviledges on all db's
13. installed temporary SSL certificate
14. created app pools in IIS -CSharpSiteAppPool,CatalogWebSvcAppPool,etc.
15. Configured the app pools to use the locadmin account
16. Added locadmin to the IIS_WPG group
17. Assigned the applications to the app pools
18. restarted IIS
19. browsed to the service http://localhost/CatalogWebService.asmx successfully

What should I do to get this working so I can create a catalog

TIA,

Steve Shier