Autonav Subpage Level Perplexity

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Hi all,
I am familiar enough with the autonav block to understand custom templates and hard coding into templates, and I think I have a simple problem and there is probably a simple answer but after trying many different configurations, I just can't get to what it may be.

I have a multi-level main navigation menu on my client's site. On top level pages with no subpages I only want top level links showing, When I click on a top level page with subpages, I want all the subpages for that page to show, even if there are two levels below. So of course I set-up autonav to show top-level, then relevant sub-pages, then all for levels of subpages. This should work, right? Why isn't it working? And why when I toggle between various options with subpages does nothing change? I'm not rendering via a custom template either, but standard view.

Here is what I mean in more graphic form:

Menu as it appears on Home page, which is great:

Home
Top Level Page 1
Top level Page 2
Top level Page 3

Menu as it appears on Top Level Page 1 which has two levels of subpages, level 2 is missing:

Home
Top Level Page 1
...Page 1 subpage a
...Page 1 subpage b
Top level Page 2
Top level Page 3

Menu as it should appear on Top Level Page 1 which has two levels of subpages:

Home
Top Level Page 1
...Page 1 subpage a
......Subpage a subpage 1
......Subpage a subpage 2
...Page 1 subpage b
Top level Page 2
Top level Page 3

What am I doing wrong here?

Thank you.

Veronikan