Front Page Display Feature Problems

I’ve just upgraded to 2.1 and I’m trying to use the new Static Front Page feature

I’ve created 2 new pages. One called ‘blogtest’ and one called ‘hometest’

In admin I’ve selected static frontpage and chosen ‘hometest’ for my frontpage and ‘blogtest’ as my posts page.

However it doesn’t seem to work. If I go to the ‘blogtest’ page it shows my blog but if i go to the ‘hometest’ page it ALSO shows my blog. However the ‘hometest’ link DOES go to the root of my domain.

Any ideas why ‘hometest’ is still showing posts???