I had this very same problem. I solved it by upgrading to Atahualpa 3.4.4, the most recent version.
http://wordpress.bytesforall.com/?p=81
The instructions for upgrading in the last post in this thread, http://forum.bytesforall.com/showthread.php?t=3378 , are pretty straightforward. Since all of the Atahualpa settings are stored in the database, they should automatically carry over to the new version.
I was using 3.2, because I’d had issues with 3.3.2. So far, 3.4.4 seems to work okay for me, but I haven’t had time to really discover any problems if they do exist.
