Express Jade Layout Won't Render Even Though Layouts Is Set to True

I am new to Express for Node.js, and I was just setting up a simple app by following Pedro Teixeira's Node Tuts Episode 9. I wanted to experiment with layout files, so I set the layout to be "true." When I did that though, it didn't render with my layout, only with my body. How should I get it to render correctly? Below is my app.js file, my index.jade, my layout.jade, and a screenshot of my rendered page.

app.js

var express = require('express');

var app = express.createServer();

app.configure(function () {
    app.use(express.logger();
});

app.set('views', __dirname + '/views');
app.set('view engine','jade');
app.set('view options', {layout: true});

app.get('/', function(request, response) {
    response.render('index');
});

app.listen(4000);

index.jade

h2 Hello
p World!

layout.jade

!!! 5
  html
    head
      title My template
    body
  #main
        h1 Content goes here
        p Testing 123
        #container!= body