WP Sendblaster opt-in – subscription confirmation problem

Newsletter Subscription Configuration Issue
I am using WordPress 2.8.2 and the following:
SendBlaster – 1.6.2
Exec-PHP Plugin – 4.9
WordPress Newsletter subscription Opt-in for SendBlaster – 1.1.5 (aka: WP SendBlaster Opt-In)

— I set the following in SendBlaster:
Manage Subscriptions: I entered mailer@michaelgaudet.com for the email address
— Send
Sender e-mail address: mailer@michaelgaudet.com
Reply-To address: mailer@michaelgaudet.com
I am using the “Use SMTP server” settings to send my email; using my Host’s SMPT service
— Manage Subscriptions
E-Mail: mailer@michaelgaudet.com
Username: mailer@michaelgaudet.com
The Connection test works fine
I checked “Keep a copy of the messages on the server once downloaded”
I checked “Update all fields”
— Manage bounce-backs
E-Mail: mailer@michaelgaudet.com
Username: mailer@michaelgaudet.com
The Connection test works fine
I checked “Keep a copy of the messages on the server once downloaded”
I checked “Process hard bounces”
I checked “Process soft bounces”

— I have set the following in WordPress:
— Exec-PHP Plugin
In Settings – I checked “Executing PHP code in text widgets is not restricted to any user. By default, users who can modify text widgets will also be able to execute PHP code in text widgets. Unselect this option to generally turn off execution of PHP code in text widgets.”
I copied the “exec-php” directory into /wp-content/plugins/
Later I found an instruction to place only the “wpsb-opt-in.php” file (not the whole zipped and downloaded directory) into the /wp-content/plugins/ directory. I moved it there (i.e. up one level); it did not make a difference.
— WP SendBlaster Opt-In
Mailbox for managing subscriptions: mailer@michaelgaudet.com
Double Opt-in: I checked “If checked you will receive subscribing emails only when user clicks on the appropriate link inside confirmation message.
E-mail (mandatory: field #1): mailer@michaelgaudet.com
— The Blog Page
I created a separate page for the Newsletter Subscription and entered the following code in it:
<?php wpsb_opt_in(); ?>

— The Scenario
The user wishing to register completed the Subscription request and clicked on Submit.
An email was sent by them and received by me.
At the bottom of the WP SendBlaster Opt-in Settings screen in the “Temp Opted-in users backup” area, I find an entry for the person with Opted-in = No. The two entries are:
ID Date/Time Opted-in IP E-mail Action
2 September 20, 2009 2:36 pm No 96.252.144.127 doogembur@yahoo.com Delete
1 September 18, 2009 7:58 pm Yes 96.252.144.127 mike@michaelgaudet.com Delete
The subscribing person received an email with the following text and link:
This is an automatic response to a subscription request started at Life’s Digressions.
Thanks for subscribing,
Michael P. Gaudet
http://www.lifesdigressions.com/index.php?wpsb_d=1253471797&wpsb_s=4e913594190c06a786cbeece0946facf#wpsbw
When the user clicked on the link, my website opens to the front page – and that is all.
When I go to SendBlaster and then the Manage Subscriptions page, all that happens when I click on Download is that I get a dialogue box with the note: New messages: 0 New subscriptions: 0 New cancellations:0.

I have two questions:
1) When the person clicks on the link in the email that they receive to double opt-in, what is supposed to happen?
2) What settings could I have wrong or what have I done wrong?