>I would have expected by virtue of the New Child on New Parent setting that when I add a new record via the parent object (selecting File/New), that a new record would automatically be added to the child table via its object. This does not appear to be the case. I get a new record in the parent, but not in the child. Also, if I make a change in the child record, then change to the parent tab before clicking save, and THEN click save, it is not saving the child record even though Save Child on Save Parent is set. I am not sure if I am missing a configuration step, or just misunderstanding how this should be working.

Did you set the "Parent Object" option in the child bizobj via the builder (on the "Parent/Child" settings tab)? You need to tell the framework which bizobj is each child's parent.