First, make sure TealOS is installed in main memory, not an SD card, as otherwise no TealOS features will work outside of the program.
Make sure you have the latest release of the program (1.35 or higher), and that the proper button are enabled in the Prefs->Activate menu. On a Centro, Palm TX and later model Treos, the home button is hard button 4. On the lifedrive, it is hard button 1.