Thanks for this plugin, its a great idea.
Unfortunately, I have encountered a problem in that the plugin replaces ALL/ANY string starting with the '#' character that it finds in the output stream. Unfortunately that includes such things as '#DDD' as found in in-line css colour specifications as well as 'http://someurl.com/somepage.html#comments' - ie. in-line, in-page links.
In particular, the excellent 'Socialize' plugin ( http://wordpress.org/extend/plugins/socialize ) - adds extra divs into posts containing such '#' prefixed constructs above.
Thus, I'm afraid to say, this plugin doesn't really seem to be 'clever enough' to be usable in many, perhaps most installations and ends up CORRUPTING perfectly good html.
Perhaps I have overlooked some easy fix, but I don't think so.
Would welcome any feedback from people experiencing similar, or better still, a patch or fix for it from the authors.
ps. i am using wp3.4.2 + bp1.6/