I'm testing simply by creating new blogs and typing in text without adding a readmore...then saving. When I look at the category blog, the initial display shows know text untinue you click on the continue reading button.
If I then re-edit the entry and look at the code, there is a readmore in front of all of the text.
Now that I have purchased the developer package, maybe I'll post a question in the developer forum...
Thanks,
Andrew