Last Updated on December 1, 2011 by Dan Nedelko
Ok looks like it’s an RTFM issue (hopefully). After installing the tumblog (or WooThemes supported Tumblog) you need to go to Settings > Permalinks and save your permalink structure again. This re-registers the custom taxonomies with the Tumblog plugin.
Here’s the reference from WooThemes Tumblog Support: http://www.woothemes.com/support/wootumblog/
Now the question is: did it work?