Hi Carl,
This is normal. The show ip ospf interface will show both active and passive interfaces in OSPF because the network that is directly connected to a passive interface will still be advertised in OSPF. Rest assured, a router will never form adjacencies over passive interfaces. Also, the show ip ospf interface should say something similar to:
Vlan128 is up, line protocol is up
[ ... cut for brevity ... ]
Timer intervals configured, Hello 10, Dead 40, Wait 40, Retransmit 5
oob-resync timeout 40
No Hellos (Passive interface)
Check it out.
Best regards,
Peter