HELP - custom widget areas no longer work in 3.6.7

I finally got brave and decided to upgrade to 3.6.7 (using WP 3.2) after reading that my custom widget areas would still work. The upgrade did create the custom widget areas (I have 4) but none of the widgets work now. I looked at index.php and don't even see where the code is located to create my custom widgets even though they show up in Administration. I'm totally confused and my site is down until I can resolve this. I have searched the forums for the answer so I guess I'm the only fool who can't figure this out! LOL