Auto indent on new line isnt working in 2008

Previously in 2005 I would create a method block starting like this:
if(true)
{

As soon as I typed the closing brace( } ) it would auto format to this:
if(true)
{
}

Then I hit enter and it would correctly insert the indention like this:
if(true)
{
_ready to type here
}

It doesnt do that now at all even though the options are set correctly. It
just sits as I typed it like this:
if(true)
{}

I should note that ctrlK+D formats it correctly, but this is unacceptable. I
should not need to manually trigger the format after typing each block.
Anyone having the same behavior? Im on Windows 7 64bit.