Good luck with this, I tried to make it work for me so my wife could track me on my long rides. I had an accident a few years back, got hit while cycling in the pine barrens, so now my wife has nightmares that I'm going to get hurt way away from civilization. Anyway I never had any luck, but it sounds like you're doing the right things. You have to be sure you set your profile preference on the computer side to "public, share with everybody", then you activate the record workout on the mobile device and choose the live tracking in script. At least it's supposed to work.
Here's a link to a video that explains it all. Hopefully you have better luck than I did, I've given up on this. BTW when you start the recorded workout on your mobile device be ready for the battery to get smoked. While on a 2 hour ride my battery went from full to about the 30% range. This app is tough on a battery.
http://vimeo.com/24838916