Labeling not curving and is overlapping... Bug???

[Teresa_Blader]

Normally this works, but the labels for my map are not responding to the street centerline curves and are stacking all the letters on top of each other and just labeling on top of each other (See Red Marks in Image). I've tried every setting I can think of, including deleting the class and recreating it. Is this bug? 

[Teresa_Blader · Accepted solution]

Ahhh... it was a wrong projected coordinate system! Nevermind!!

Once I set that, the labels acted as expected.