Hey Hero, the root of your problem is that the cheese has it's collisions property disabled (click the cheese then look at the panel on the left hand side where it says Collisions). This means it wont detect collisions even if you have it coded up in events.
The biggest tip I can share with you on how to determine if it a user error or a bug is to always start a brand new project when you run into a problem and keep it as simple as possible. If it works in the new project you know you have done something wrong.
Don't despair mate, it may seem like you are hitting a brick wall now but all the 'failed' troubleshooting attempts really end up helping you in the end to diagnose future problems. Keep motivated and we will see a great game out of you yet I am sure.