cap 2 - cap deploy:setup not using sudo?

Hey there,

I'm setting up cap for the first time.  I'm doing it against a server  
I control.  When I run cap deploy:setup I see it attempting the  
commands but it's failing due to permissions.  It doesn't seem to use  
sudo.

* I have the user setup in sudoers with NOPASSWD
* I've set the following in deploy.rb
default_run_options[:pty] = true     (suggestion from another post,  
but likely a cap 1.0 solution)
set :use_sudo, true (even though it should default to true)

This is the output: (snipped a little bit)
   * executing `deploy:setup'
   * executing "umask 02 && mkdir -p /var/www/myapp /var/www/myapp/ 
releases /var/www/myapp/shared /var/www/myapp/shared/system /var/www/ 
myapp/shared/log /var/www/myapp/shared/pids"
     servers: ["pref"]
     [pref] executing command
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
** [out :: pref] mkdir: cannot create directory `/var/www/myapp':  
Permission denied
     command finished
command "umask 02 && mkdir -p /var/www/myapp /var/www/myapp/releases / 
var/www/myapp/shared /var/www/myapp/shared/system /var/www/myapp/ 
shared/log /var/www/myapp/shared/pids" failed on pref

Thanks for any help,

Alex