In WordPress 3.1 with Twenty Ten theme, this plugin removes wpautop on formatting on ALL pages, not just ones with a the template tag added. Also confirmed that the plugin's option: "wpautop filter on by default?" was set to "no".
Changing the setting "wpautop filter on by default?" was set to "yes", DEACTIVATES the removal of <p> and
insertion on ALL pages, regardless of the presence/absence of the template tag.