[catpath] not working?

I can't get pathauto to create the full path for a node. It includes the parent taxonomy term, but not the child.

My taxonomy looks like this:

Hardware (vocabulary)
Storage
-CD and DVD

Tagging a node with both "storage" and "CD and DVD" terms results in the following alias

my_domain.com/reviews/storage/slimdvdup.html

I was expecting
my_domain.com/reviews/storage/cd-and-dvd/slimdvdup.html

I am using the following setting under content type

reviews/[catpath]/[title].html

Am I just not understanding how pathauto works? Aliases for my flat taxonomies work great...

Thanks,

Don