Mike, what's the chances you're doing this with a Web project as the default in your solution file? Unfortuantely, OTB will not display for Web projects (yes, yes ... I know.) If this is the case, consider factoring the classes into a Class Library, make it the default project (for the purposes of testing) and then see if you have the Create Instance. This is one of those "subtle" things that isn't widely mentioned, unfortunately, and I should have said something more.

Yes, that's exactly what it was! Thanks for that comment -- this OTB works really well!