[OS X TeX] Can't get microtype.sty to work -- very frustrated

[Brian Burge-Hendrix]

I'm sure that it's me, but I simply cannot get microtype.sty to work  
with TeXShop and my Tex Live 2007 distribution, running on Leopard.  
I've got TeXShop's preferences set to use pdfatex, and I've tried  
forcing its use (%!TEX TS-program = pdflatex), butmy console keeps  
giving me:

(./microtype.sty
Package microtype Warning: You don't seem to be using pdftex.
(microtype)                `microtype' only works with pdftex.
(microtype)                Try running `pdflatex' instead of `latex'.

Am I losing my mind?

Sorry to bother the list with this, but I've spent the past hour  
googling for answers.

Regards,
Brian