Well, after finagling around with it, I found a work around, but I still think there is a problem. After creating the muliti-camera sequence and syncing all my clips, I right clicked the multi-cam sequence and selected "New Sequence from Clip" and it created a target sequence correctly. I then was able to right click the target sequence and enable the multi-cam as normal.
Is the "linked selection" icon selected or not? You can find that on the top right of your timeline. Toggling it allows you to drop a nested sequence (eg. multicam) on a timeline as either one single nested clip or as the expanded view with all the clips showing which it sounds like you are referring to. It's the middle icon here:
Thanks DMH79! I feel a bit sheepish now! That corrected it for me, never messed with that button before and I've been using Premiere since CS3!