Removes default version query strings from CSS/JS resources, appends the modified time to the filename, and creates the necessary .htaccess rewrites.
Visit your site and view the source - you should see your CSS/JS resources changed from http://YOURSITE.COM/wp-content/plugins/YOURPLUGIN/css/style.css?ver=3.4.2 to something like http://YOURSITE.COM/wp-content/plugins/YOURPLUGIN/css/style.1347022625.css
This means that either you have not saved your permalinks from the default config, or you have a permissions issue. Your host can help you with the latter.
Sure! I'm always open to knew ideas. Just create a new issue and I'll take a gander.