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I apologize, Og. It is working, just did not tell you two important things:
1) You need to restart katello-jobs to see something:
service katello-jobs restart
2) If this is UPGRADED installation it will not work unless you edit your production.rb and sysconfig and init.d configuration files. I higly recommend to do clean installation for this - can be quite difficult. If you want to do it see those changes:
http://git.fedorahosted.org/git/?p=katello.git;a=commitdiff;h=e36bbd0ee7501fd082cd4e68f3db5915d74dc6f2;hp=fad3a89dd63471a3b233097079a2e709c208d9a2
Some files gets replaced during upgrade, some not (and files are saved as .rpmnew), diff it then. Again, new installation is recommended.