Actually I think I just resolved my issue. I don't know if this is a bug or as designed but it really gave me some confusion.
What I found out is if you follow these steps you get this issue:
- Create new sequence.
- Select Musical Sequence
- Select Audio File
- Select 20fps
- Click the Skip >> button
- Click the Done >> button
- Select menu Import / Import Effects
- Select your lms file
You will then see that the model drop down list is empty.
I found that in the new sequence, you have to select your View first to display the models BEFORE you do the import.
I know it was mentioned in the training that you have to 'create' the modes first but didn't know they physically had to be selected in the View first also.
So, my issue is resolved (at least this one) and maybe this might help anyone else just starting with this also.