Hi Gareth,
You are correct (my apologies). The Audio Replacement feature is available in the 1.3 version as noted in the following comparison chart ("audio replacement" has two asterisks, and noted at the bottom it indicates only available in version 1.3)
http://www.ulead.com/dws/compare.htm
On the bright side, it will allow you to add an audio track to a video-only file. I just created a quick test with a video (no audio) file, added an audio track, and created the DVD. The audio played fine.
Sorry for the confusion (I am on version 1.3, and forgot people might be using a version lower than that).
George