Hi sshea...
This is due to a semi-recent update to Panels.
To complete this lesson (and we're posting an update shortly)...
Make sure you have Panels and Page Manager (under Chaos Tools) enabled.
Go to Structure->Panels and click the Enable link next to Node Template.
Then go back and click on Structure->Panels again (important), and click on Edit next to the Node Template.
Click on create new variant and give it the name Movies. Make the Variant type a Panel and click create variant.
Select a 2 column brick layout and continue through the tutorial.
One thing you'll need to do after you finish is to add a selection rule. Click on the dropdown and select Node:type - select movies and click add.
from there - just go down the left hand side, clicking on each tab to make sure the settings are correct.
Eliminating the wizard may have been the right thing for panels - but it sure made it tougher for new users...
I hope this helps.
Rod