Use WP 3.1, Theme Profilic (Solostream), Plugin version 1.0.5
I followed all the installing instructions. Settings:
Levels: free, insider (member)
Protection by categories (free/insider) (free: can see all teasers, content of categary "free" only)
More-tag: content visible before more-tag for everybody, after more-tag for insider only
I have created a Google site with screenshots:https://sites.google.com/site/membershipplugin/
Non-members see a home page that shows the no-access-pace content, but no teasers. That's why the sidebar goes to the bottom. Normally it is a 2-column-homepage. If I'm logged in everything is OK.
I have not tested download protection yet.
Is there a widget with registration fields? I have none.