[Plugin: Hacklog Remote Image Autosave] how does it work ?

could you please tell me how to get your plugin to work ? I go to “Post > Add New” I paste remote image into the post editor. Ontop i have 2 options “DO NOT DOWNLOAD” and “DOWNLOAD”. I click “DOWNLOAD”. And then whats next? I click save,update,publish. But in HTML view, image is still remote image. Not local. please help

http://wordpress.org/extend/plugins/hacklog-remote-image-autosave/