Hi Don,
I just went through my process again to see where you might be missing something, and I remembered where I had a hiccup the first time.
When setting up or reconfiguring the editor, in 'HTML Editor: Editor Settings' > 'Styling' tab, - once you have browsed to the stylesheet you want HTMLed to get styles from, and you can then see them in the 'Available styles:' window, you must SELECT the ones you want to use - either by using holding down your Ctrl key and clicking them individually, or by sliding your mouse over the area and selecting them all.
Only when they are all highlighted when you click OK will those styles be written to the styles xml file and appear in your editor window.