I am having an issue with the Commerce/Product Display.

Product SKU 0001 with Attribute: Color: Red -- Size: Small
Product SKU 0001 with Attribute: Color: Red -- Size: Medium
Product SKU 0002 with Attribute: Color: Blue -- Size: Small (etc)

I then have a Product Display for "T-shirt" where I include both products.

The issue is when you view the product...  There is no dropdown to allow you to choose the color seperatly, which should then display all the sizes for that color.  Instead, I am getting one long dropdown with all the products regardless of color/size.

I really need the visitor to first choose the color and secondly choose the size that corresponds with the color.

I am also using the Creativ theme for another project and it correctly has the color/size dropdowns.  However, this theme is simply not working correctly in that regard.

First attachement shows Creativ theme working correctly.
Second attachment shows Exception theme not working correctly.