I've got this activated and it doesn't appear to be adding nofollow or index tags to any of the links I've selected.
Fwiw I also have the all in one SEO plugin installed, and pages I've selected to have noindex nofollow on for that also don't appear to be working.
tried deactivating both of them to see if that made any difference but alas no
I'm out of ideas now
using wp 2.7.1