As a rule of thumb I ALWAYS do material adding and/or editing at the Part level. That said, I thought that I would be adventurous and try configuration with Photoworks. Needless to say it blows up big time once thrown into an Assembly in that when you render none of the materials are there. I even went back into the Part level and switched from "All" configurations to "Specify" configurations and it gave the same end result.
So I had an "AH Ha"moment and thought, that I had missed something thinking that maybe the work flow might be different for configurations so I went to the Assembly and added different materials to each of the features while I was editing each Part "So this should solve my problem, right?" Click render and a big fat "NO" from the program. ARGH!!!!!!!!!!!
This is huge!!! if this is a bug. I mean having to create 3 separate files just to add materials from Photoworks makes me feel like Charlie Brown running to kick the football while Lucy is holding it. Maybe one of you guys know a work around, but for now it seems not to work the way it should.