I have problems establishing a private files directory (D7.22)

I started at reading this article: http://drupal.org/documentation/modules/file. I then created a private folder above the Drupal root, and entered its path ../private at admin/config/media/file-system. Despite being warned about the performance implications, I chose the Default download method as Private local files served by Drupal. Then, in a content type I created a native file field named Attachment, with Upload destination set to Private files. Widget: File.

At this stage I imagined that these settings would cause an uploaded file to go inside the ../private directory. Nope, instead they go into public directory sites/default/files. Was my assumption wrong?

I tried the following debugging changes - but to no avail:

• changed ../private to sites/default/files/secure
• changed field widget to Media file selector
• changed default download method to Public local files served by Drupal

Is it a site ghost? Am I doing anything wrong? I really see no reason for this not to work. I'm close to filing a bug issue but would appreciate someone confirm that on their installation before I do so.