Anyone have experience with Apple Mail and Gmail?

When you set up Apple Mail (5.2) to synch with Gmail through IMAP, the Gmail labels are supposed to translate to Apple Mail folders, correct?

I have a ton of Gmail labels and none are showing up in Apple Mail except Archive, Important, Sent Messages, Starred and Trash.

I'm pretty sure this is some Gmail setting that I have wrong but can't seem to figure it out. Anyone?

Log into GMail, mange labels and you will see the option to control which labels will be shared via IMAP. Each label has a corresponding checkbox.

Almost all of my labels are checked and they are not displaying in IMAP. I had the same problem with Postbox so I'm pretty sure it's a Gmail problem. Just cannot seem to figure it out.