When the last post on setting appeared on Electric Spec's blog (issue forthcoming at the end of the month!!) a fellow editor asked me to clarify my thoughts. So you consider all aspects of world building to be part of setting?
And, well, put like that, yes, I guess I do. To me setting is more than just the immediate physical space where the scene is taking place. I consider setting to be the world the characters inhabit, including all aspects of that world: language, down to the idioms, physical features, socio-political conditions, religion, and every other thing my tea-starved brain is neglecting to think up.
I suppose I could exchange the term setting for world on my three-legged stool, but I'm old and set in my ways.
Set in my ways. Get it? Har. I made a funny.