Never mind....stumbled across solution.
Apparently you have to go to <Format - Timescale> Click on "Non-working time" and select the correct calendar (even thought the calendar is already selected for the project).

Why would a user be required to apply the desired calendar in multiple choices (Project Information and now here) is beyond me.

Jay

Also just saw you can righ-click in the Gantt area and select "non-working time".