QGIS » QGIS Application

I just installed the separate framework version of QGIS 1.6 Copiapo for Mac OS (I have used the standalone 1.5 until recently). Wanted to add a GPX file to a project which otherwise have UTM WGS84 33N projected layers. I used the "save as shape file" option and chose the UTM WGS84 33N projection of the new file (as I have done hundreds of times before). In the resulting shape file the projection was set to UTM WGS84 33N, however the coordinates are not projected and the use of the function "Add geometry columns" showed that the coordinates was the same lat. long coordinates as in the GPX file. Tried to do the same thing again, but using original CRS when converting to shape file. Then I tried to project that resulting shape file using the "Export to new projection" function....same result. Adding the lat long shape file to the project with "on the fly projection" activated doesn´t help either. Seems like the projection simply are not working