Help with an old tut problem

[coldwetnoz]

I did this tut a few years ago and decided to do it again and make some of my own changes, since I do know a little bit more about Xara now.
There is a step in the tut where you convert to editable shapes/convert lines to shape/arrange:ungroup.

We had a discussion about why this doesn't work last time and I can't remember what the solution was. Trouble is, ungroup is greyed out and can't be applied if you follow the tut.

Tutorial: http://www.xaraxone.com/webxealot/wo...workbook_5.htm Step 6

Could I get some help with this?
Thanks,
pslane