Zone not in drop down menu

[haircrazy]

Hi,
I'm currently trying out RC2 and am importing all my stuff from Max 1.7
I'd like to set up the payment module for cheques to show only for the UK.
I added a new zone for the UK but the only thing in the Payment Zone menu is --none-- (should I have needed to add a zone for the UK or am I missing something?)
Anyone know what I've done wrong? Any help appreciated.

[jpf]

I think this is looking at TAX ZONE - add a TAX ZONE for UK....