BFA subscribe widget not working

WP version is 2.8.4
Atahualpa 3.4.1

Hello,

I have noticed that my BFA subscribe widget is not working properly. Namely:

1. It does not send any emails to subscribed users (though blog is updated daily)
2. After registering for email subscription (top field of the plugin) and confirming it, the new subscribed is NOT added to the Subscribers list under Tools section of the blog admin panel menu (this could irrelevant, I am not sure)
3. However, when I try to subscribe again with the same email - it says that user with this email is already subscribed (via feedburner).

Could you advise me how to amend the situation? - I want my email subscription working.
Thank you