Hey jameskoster - thanks for that!
I think you're correct and any chance you can tell me where to find the 'hide out of stock' option?
I have these options only under Inventory and its not in the other sections:
Manage stock? (checked: Enable stock management at product level)
Stock Qty
Stock status
Allow Backorders?
Sold Individually (checked: Enable this to only allow one of this item to be bought in a single order)
Cheers!