Template name is case sensitive. The name should according to the folder name.
/*
Theme Name: Mystile Child Theme
Theme URI: http://www.woothemes.com/
Version: 1.3.0
Description: Designed by <a href="http://www.woothemes.com">WooThemes</a>.
Author: WooThemes
Author URI: http://www.woothemes.com
Tags: woothemes
Template: Mystile
Copyright: (c) 2009-2011 WooThemes.
License: GNU General Public License v2.0
License URI: http://www.gnu.org/licenses/gpl-2.0.html
*/
@import url('../Mystile/style.css');
Problem was I had Mystile where it should be: Template: mystile
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