I have installed this plugin version 1.2.3, hoping that it should be working well as you updated in change long that FB connect problem is fixed.
However, my problem seems to be different. I have installed it on wp 3.4.2 site hosted on hostgator shared hosting.
You can review the page here... http://www.sustainuance.com/my-account/
The icons for connecting through fb appears, but there is no action when we click it. Any idea what could be the problem and how to fix that?