When I add services to the appointments settings and place the time limits it only opens up 3 slots

For example:

I have one service that is reserved to take 180 minutes.
I have the hours to work starting at 8am until 330pm allowing overflow hours.
The calendar only shows me available at 8am, 11am and 2pm.

I want all my hours for the day to be open so that if someone books at 9 or 10:30 the calendar will then block off 180 minutes from that time.

Am I making sense to anyone? Please Help.

BTW: Great job on updating Appointments to schedule with google calendar both ways!!