Creating Page with Page Layout in SPD

Hi

I'm tyrying to create a page in SPD that uses a Page layout. Evertime I create a page in SPD I get the master page but no menu on the left which comes from the page layout.

In my subsite I have publishing switched on but the 'Page Layouts' is empty.

I then tried the same on the top level site and pages created in SPD behave the same, no page layout.
When using the browser I am able to create pages with page layouts.

Any ideas?

Thanks