Directory Plugin - Uploading Featured Image does not keep thumbnail as featured

I'm running:
- WP 3.5
- Directory Plugin (latest version downloaded today)
- Brand new installation (no plugins, running 2011 theme)

1) ISSUE 1: When uploading image through the front-end "Add Listing" page (/listings/add-listing/), the set featured image does not remain set once published.
- image does get added to media library
- image does NOT get 'attached' as the featured image to the listing

2) ISSUE 2: When uploading image through the 'Add LIsting' page, the media library becomes fully visible. This means any user can select ANY image from the media library. They can see and choose any image from site's ENTIRE media library. This should not happen. They should only be allowed to upload their own image (nothing more). I don't see any good reason why random user should get access to entire media library when 'setting featured image'.

3) Need clarification about Registration Page - If user is new (therefore no account exists), then they only have option to Login / Forgot (/listings/signup or /listings/signin), whereas I expect some form to register a new account so they can add listing. Where is the front-end registration page for Directory? They cannot purchase

This is my first experience with WPMU. Looking forward to trying out the other plugins once I get past this setup. Thx.