Help with Vertex groups please. No "create from closet bone" option

I’m doing the walk through animation in the blender manual found on blender.org, and on part two of it, after i have my bones made it tells me to select the body, then the bones (in edit mode) and hit CNTRL+P; and click armeture>>>then “create from closet bone”. the Problem is under the armeture options i only get the choices of “don’t create groups,” “name groups,” “create from envelopes,” “create from bone heat” what’s going on here. ur help would be appriciated, thanks!
mrdiscus!

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gingerbreadman.blend (359 KB)

Rigging has evolve in the last versions of Blender, for your example, you can choose “create from bone heats”. The tutorial may be a bit out of date.
Check the manual for actual knowledge: http://wiki.blender.org/index.php/Manual/Armature_Objects