Try clearing the cSprite Cache, there is an option for this in the settings. If you are using WP-Super Cache, try deleting the cache and refreshing the page. It is recommended that you clear both caches when you change the cSprite options.
cSprites only works on your content images, that is, any images that are contained in the main Wordpress loop.
You MAY NOT use padding on the image if you would like to use cSprites, this is because the images are tightly packed and when you use padding parts of other images may show through. Wrap the img tag in a div or other element and add some padding to that. Also make sure that the force no padding option is set to On in the options screen.
You MUST be running PHP >= 5.0 and have GD library
Make sure that you have this line in your php.ini file: allow_url_fopen = ON
Make sure that the cache directory in the csprites-for-wordpress plugin directory is writeable




