Windows 7 - Set to Require Password on Wakeup - But it doesn't

Hi all - I have an annoying problem. I have my settings so that when my computer awakes it will ask for my password.
In System Settings, I have Require a Password selected under the option of Password Protection on Wakeup. It is also set that way in Power Options > Require Password on Wakeup > Yes.
I have attached a document with a screenshot of both options selected. Unfortunately, when I close the lid and then resume, I'm never asked for a password. I'm also not asked for a password when resuming from pressing the power button.
I have run AVG, Spybot, Adaware, and CCleaner in safe mode and can't figure out why the computer would be doing something other than what it is set to do.

Any ideas?! Please help!

Dunno if this will help, but do you have a password enabled with your screen saver? That's the only significant difference from your system to mine As far as I know.

My screensaver is turned off - set to none.

Thanks for the idea. Do you or anyone else have any other ideas? I just can't figure out why it would be doing something different from the settings! I'd really love to not have to reformat and start over!