You selected the New Products Table Occurrence in Layout Setup | Show Records from?
If so, there's nothing in place to limit the records shown by the 1 or any other value. A relationship works from two table occurrences so this would work if your layout were based on orders and you placed a portal to the new products occurrence on your layout.
If you want to base your layout on an occurrence of products, you don't need the new relationship to make this work. You can perform a find to limit the found set to only records of a specified type and this can be set to happen automatically when you first access the layout if you use the OnLayoutLoad script trigger.