Yup. I set up an attribute for COLORS...then added all the color options of the backpacks. For each backpack that has color options, I have added the COLORS attributes and chosen which colors are associated to which backpack for the shopper to be able to choose from.

The store is live and the options work. The attributes go through the ordering system,etc...

When i am in the edit mode of the product, I see the attributes. When I choose the adjustment setting to add the additional skus, that is where it tells me there aren't any attributes associated with the product.