I think you have to now bind the skin.

I think I selected the skin first, then the bone structure. When they are both selected, if I'm not mistaken choose Animation from the drop down menu, then go to Skin -> bind skin -> Smooth Bind.

However, some other members may be able to shed a lot more light on this and be of better assistance.

I had to do this for a Gorilla project I did, I'll try and find some images and post em up. After you bind the skin, you might have to mess around with the painted weights tool, but there are a few tutorials here that will explain how to do it.

Hope this helps.