I'm looking at the columns inside "manage catalog" and one of them is titled 'In Stock' with yes/no display options.
I thought that the "stock availability" option inside the item settings would change this but that does not appear to be the case.
This item is set to "stock availability > In Stock" yet it shows "No". I have another item that has qty '3' stock availability > in stock, and it still shows "no" in the "in stock" column!
Thanks so much.
You need to set general settings to manage stock.
Go to System -> Configuration -> Inventory -> Manage stock set to Yes