I’ve just tested the plugin on a clean install of WordPress v3.2.1 with the TwentyEleven theme, and everything works as expected.
One note is that the custom post templates must have the correct header, like the example below, and be in the same directory as the index.php template file for the theme, (i.e. not in any sub-directory/sub-folder of the theme).
* Template Name Posts: The name of the template
it does. actually i think i suggested you change from TEMPLATEPATH to STYLESHEETPATH for version 1. how time flies and the memory goes. was having a facepalm moment, but it does work just fine w/ child themes.