Sectioning in LaTeX export

[Mark Elston <m_elston@comcast.net>]

I have an org file I use specifically for exporting a collection of
other org files to pdf (using LaTeX).  However, the resulting output
is not very much like I would like it to be.

I am using the book class for now but will likely add my own LaTeX_CLASS
entry later once I get this all figured out.

Ideally, each included file should form its own chapter.  Within that
chapter each level 1 heading would be a section, level 2 headings would
be subsections, etc.

I cannot get this to happen.  Every level 1 heading is always an itemize
item and level 2 and below just show up as "** <heading>" lines.

Currently, at the top of my top-level org file I have the following:

#+TITLE:  My Tasks
#+OPTIONS: H:4 num:t d:t
#+LaTeX_CLASS: book

The title and class seem to work but the options line seems to be
ignored.

How can I enforce some structure to my resulting latex code?

Mark