I am having problems as well, but it is on a dev-blog using 3.1, so I am happy (I should say relieved) to see others having issues.
As best I can tell, there is a search/append function that looks for the post title and wraps it with <span>…</span> to assist the javascript.
The problem is that the theme I have activated uses the post title as the image title and alternate text in addition to the headline.
Here is a small example:
<h3><a href="https://candy95.aggielandsrock.com/2010/11/beauty-and-the-beast-on-broadway/">
<!-- first occurance of FEE <span> -->
<span data-type="input" data-post_id="199" class="fee-field fee-filter-the_title">Beauty and the Beast on BROADWAY!</span></a></h3>
<div class="post-date">Tuesday, November 23rd, 2010</div>
<div class="post-tnail"><a href="https://candy95.aggielandsrock.com/2010/11/beauty-and-the-beast-on-broadway/"
<!-- second occurance of FEE <span> -->
title="<span data-type="input" data-post_id="199" class="fee-field fee-filter-the_title">Beauty and the Beast on BROADWAY!</span>"><img src="https://candy95.aggielandsrock.com/wp-content/themes/imperial/thumb.php?src=https://candy95.aggielandsrock.com/wp-content/uploads/2010/11/beauty-beast.jpg&w=372&h=100&zc=1&q=95"
<!-- third occurance of FEE <span> -->
alt="<span data-type="input" data-post_id="199" class="fee-field fee-filter-the_title">Beauty and the Beast on BROADWAY!</span>" /></a></div>
The first comment is near the intention of the plugin, but the latter two are collateral damage due to my themes author using the post title instead of any other meta info.
Look forward to the next update so I can use this again. I really like where it is headed.
Patrick
EDIT: Formatting