Input Format fieldgroup in "New Custom Content" not expandable - results in stripped tags

First....Thanks to everyone involved for your awesome work on this new version of panels!

I may have a bug...I may not be looking in the right place...but here goes...

Am I supposed to be able to change the input format when creating a "new custom content" area?
I have no trouble with input formatting on all other pages/content types...and didn't find any panels specific settings for input formatting... The fieldgroup for input format is displayed, but not expandable.

I know I can make my content into blocks, and then have the option to change format before moving to panels...but it would be easier, in this particular case, to do everything within panels.

Thanks!