I've tried it twice, but it simply won't work. Thumbnails and pictures are neither displayed in the backend nor in the front end. Trying to open a picture on the front end via the placeholder of the non-existent thumbnails generates a off-site 404 error telling me that there is no "blogs.php".
The plugin still seems to be at odds with the blogs.dir structure on a multi site install - and it doesn't matter whether the thing is activated for all blogs or just for one.