Sorry for your confusion, CFCJAM. If you're dissatisfied I suggest getting your money back. Sony never claims noise cancelling works except with the included earbuds. It's built-in because the processing isn't done at the headphones. It requires sound input from the headphone mics to work, though.
As for the review you linked to, ignore any reference to the Touch. Doesn't matter. The included buds ARE sound isolating, and if the reviewer had taken time to set the noise cancelling right he/she would have been more than impressed. First, there are different settings for the environment you're in. I set mine for Office as I don't ride a bus. When active, it eliminates my PC's fan noise (PC sits atop my desk nexy to the monitor), the squeeks of my chair, the sound of the house air-conditioner, all traffic noise from outside, and any plumbing sounds from inside the house. It's hard even to hear my hands clap or fingers snapping.