Menu

I’m having issues using the new WordPress 3.0 Menu option. I have the following code in my functions.php and header.php file.

functions.php

<?php

add_action( 'after_setup_theme', 'test_setup' );

if ( ! function_exists( 'test_setup' ) ):

function test_setup() {

	register_nav_menu( 'primary', __( 'Primary Menu', 'test' ) );
}
endif
?>

header.php

<ul id="navlist">
                        <?php wp_nav_menu( array( 'theme_location' => 'primary' ) ); ?>
                    </ul>

I have a total of 12 pages but only have 4 in the custom menu, but all 12 pages are showing. What am I doing wrong?