Problem following a tutorial

My tutorial i am reading explains how to add a image as a background.

So i add it to the UV/Image editor. Then select that in the drop down under background images.

And i tick background images on.

IT then says to press numpad 1 to view it in front view orthographic but i see nothing there yet the tutorial says it should be =/

This is the tutorial im following:
http://gryllus.net/Blender/PDFTutorials/YellowSubmarine.pdf

Any idea whats going on :S

watch this tutorial: http://cgcookie.com/blender/2011/06/28/tip-using-empties-with-image-display-mode/

1)Press N To bring up your Display Tab.
2)Scroll Down to Background image and add yours.
http://www.pasteall.org/pic/show.php?id=23970
3)Press 1 numpad to go into front view.
4) and then 5 numpad to go into perspective view