Quinto Game Example Code Not Working

I'm working through the Squeak by Example book and ran into a snag. The code on
page 33 for the Quinto game is returning an error message.
I have the SBECell selected and "-- all --" is highlighted in the right pane,
just like in the book, but it responds with the message "Unknown variable:
initialize   please correct or cancel:  / declare temp / declare instance /
cancel". 

So I guess it doesn't  recognize "initialize" and thinks I'm trying to create a
variable? According to the book it should be recognized.

Here's the code:

initialize
        super initialize.
        self label: ''.
        self borderWidth: 2.
        bounds := 0@0 corner: 16@16.
        offColor := Color paleYellow.
        onColor := Color paleBlue darker.
        self useSquareCorners.
        self turnOff


I even downloaded the code for the book from Squeaksource and pasted it in and
it does the same thing.

Any help would be appreciated.

Thanks,
- Eric (Dr. Zephy)