Airbus 320: Approach Phase...

I have been flying the Airbus 320 (from Wilco Publishing) for awhile now and getting a little better, so I think. But I do have a question regarding activating the Approach Phase, Localizer and Autoland.

Here's how I regularly setup the IFR Flight (Sorry, but I've included the tedious details for you to hopefully point out where I'm going wrong, what I've missed):

I start FSX, go into the Flight Planner and choose IFR Flight, select High Altitude, and the Departure/Arrival airports - usually selecting short trips.

Once, I'm sitting in the aircraft, I do the following:
1. Go to the FMGC, dial in the Departure/Arrival airports, Align, Flight Level, Flight Number. While still in the FMGC, then I go to Next Page and I do nothing since it's usually filled in like Fuel/block information. Then, I go to the F-Plan and do the Lateral Revision thing for both the Departure/Arrival airports and runways. Afterwards, I go to the Perf Page and dial in the Vspeeds, Flaps, etc.

2. Then I return to cockpit panels. Overhead Panel, I turn on the appropriate lights/cabin signs.
3. Start engines (APU, Pumps, etc.or just Control E).
4. Check scratch memo of lower ECAM for TO (takeoff) configuration, to ensure no problems. Arm spoilers, Flaps for takeoff, Autobrakes to Max, etc.
5. Contact ATC - initial altitude and taxi clearance.
6. Dial in the altitude using the knob on the FCU. Move jet to runway. Turn on FD unless already turned on.
7. Get takeoff clearance from ATC.
8. Throttles pushed to Flex or TOGA. (release parking brakes)
9. At Vroll point (on speed tape), pull yoke back, allowing the nose up, 10 degrees, yada yada...
10. Gear up. Watch for equal sign on speed tape for flap retraction.
11. Watch speed tape for flashing LVR CLB message, then pull thrust lever back to CL detent. CL will appear on upper ECAM. Autothrust will automatically engage.
12. Turn on Autopilot 1.
13. Now at this point, I can either control the HEADING by having it (the HDG knob on the FCU) in selected mode (pulled) and adjust it based on the flight instructions of the ATC or push the HDG knob in so that it will fly the route automatically. After watching the ND, we finally reach the Top of Climb point. In any case, this isn't where the problem starts.
14. When the Top of Descent point is reached, I start thinking about descent. If I'm following the ATC, they're usually good about telling me to descend to a certain altitude.
15. At this point, I do two things. I press the ILS button on the FCU and then click Activate Approach in the MCDU's Perf Page. Hopefully, the airport's frequency ILS info will be displayed in pink on the lower corner of the PFD. "ILS APP" appears on the top of the ND.
16. The aircraft will slow automatically - I will tend to watch the speedtape for the "green dot" speed.
17. I'm usually at about 50-60 miles away from the arrival airport at this point. So, I just keep flying and following the ATC, controlling the heading (with HDG knob) as instructed by the ATC. I'm also controling the speed by watching the speedtape and equal sign, slowing the jet with use of flaps.
18. Once the ATC, says "you're cleared for ILS approach", I will turn on the LOC button (on the FCU), drop the gear, and turn on the Approach button on the FCU. And finally, turn on the Autopilot 2 on the FCU.
LOC and G/S appears on the annunciator of the PFD.
19. Spoilers armed, Autobrake set to Med.
20. Now at this point, I assume, that I can take my hands off all controls and allow the jet to land itself. Of course when I hear the "retard" call, I shut off the throttle manually.

But at that point, the plane should land right? No hands on? Well, what seems to happen instead is that the airplane does line up with the runway, as I can visually determine through the window as well as the arrival airport location on the ND, but it doesn't drop in altitude toward the runway. It will fly right over the runway and then suddenly start a banking turn, right over the airport. Should I have done anything with last ATC instruction about the altitude? I left the HDG knob in selected mode and didn't touch that knob anymore because I assumed that all was under the control of the ILS. Sorry, there was a lot here but could you see if there was anything I left out, should have been watching, ignored? Whatever, share your suggestions. Otherwise, this is fun.

- Kareem