I was able to reproduce the problem on certain WP installs and the issue has been corrected.
I just uploaded version 1.2.3 with the patch a few minutes ago. Please download the file and give it a try. It should work fine now but please let me know if you have any additional problems.
Thank you again for finding this bug!
Did you resolve your issue? If not, which version of WP are you using?
I’d recommend uninstalling the plugin and re-installing it. Let me know if it still won’t activate.