Why am I losing my paste special menu????

This is happening in both 2007 and 2010. I am trying to record a simple macro that involves the NOW() function. But after the NOW() executes I need to replace the cell's contents simply with the values the program produces. Easy right? Just go to "paste special" and choose "Values." Nope. Tried it in Excel 2007 and 2010, and instead I get this weird menu that I am not familiar with that gives me an option of pasting in text or uniform or unicode text or something. I am working with a textbook and this is happening in direct contradiction to what the textbook says should be happening. Is there some setting I am missing? Why won't my normal paste special menu come up??? Any master out there that can help me would have my sincerest thanks.

In the following example, A1 has the '=Now()' function.

Sub Macro1()
'
' Macro1 Macro
'

'
    Range("A1").Select
    Selection.Copy
    Selection.PasteSpecial Paste:=xlPasteValues, Operation:=xlNone, SkipBlanks:=False, Transpose:=False
End Sub

That may have just been me skipping over the name part to try and examine the "meat" of the problem. The real question is where is the paste values option and how do I get it back? I'm at an impass here. I felt like this was too simple of a question for the VBA area.