I believe I"ve found the solution to these two problems.
For the issue of not seeing the figure 4-16 window, Basically the master page library seems to be automatically set up to publish major versions and not allow minor versions. From a certain point of you, you don't need to do anything because it's already on the option "Publish a major version." But if you want to see this window anyway, go to the master page library, click 'List Settings' in the Ribbon, then find the versioning options and select "Allow major and minor version." Now the window will pop up as indicated in the book.
For the second problem of the Master Page link not showing up in "Look and Feel", you need to activate the publishing feature. Go to Site Actions > Site Settings. Under the Site Actions section (under Look and Feel), find the 'manage site features' link, and look for the "SharePoint Server Publishing." Activate this Feature, and then go back to the Site Settings Page, and look at the Look and Feel Section. There should be a link for Master Page.
Last edited by AlexGrab; March 23rd, 2011 at 12:34 PM..