No, it was a result of using TNManager.LoadLevel() instead of JoinChannel. It's certainly an option to have the character selection in the game level, but keeping it in its own scene allows better management and more options.
Presently it's working correctly, with players joining Channel 1 and having the setup there, and then joining channel 2 to play the game. Just need to work out how to keep/pass data for channel 1, or how to communicate between channels...