Hi ckerr1 ,
sounds to me, like you have the following situation (correct me, if I'm wrong).
1. Create Test Case (Version 1.0)
2. Put Test Case into Test Cycle (1.0)
3. Create New Version of Test Case (2.0)
4. Change Steps of Version 2.0
5. Check for Notification in Existing Test Cycle (still TC Version 1.0)
Since the test case that was added to the Test Cycle was at version 1.0 and you made changes to version 2.0, the notification does not show (since version 1.0 was not changed). Try adding the new version of the test case to a test cycle and make a change then and you should see the notification pop up.
The notification does not appear if you just create a new version of a test case, because (as I understand the intent behind the feature) the versions are meant to be used side by side under certain circumstances. So, creating a new version doesn't necessarily mean, that the previous version is outdated at that point.
I hope, I did not completely misinterpret your problem.
Cheers
Josh
