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When I go into settings under security I have a pattern set up for unlocking the screen. I have it timed to automatically lock after one minute. The only problem is it locks immediately. Any idea if there is a setting I'm missing somewhere? thanks

I see the same behavior. I hope someone can shed some light on this!
On 4.0.4 (and perhaps 4.0.3, but I skipped that version) Google added an option under security called "Power button instantly locks". It's enabled by default, but you can uncheck it to use the lock button as a screen on/off instead.
If you have a timeout set to lock the phone after n minutes, this will now only lock the phone after it's been idle for n minutes, regardless of whether you press the lock button or not.