Membership 1.0.5 Configuration

I've gone through the instructions for configuring the Membership v1.0.5 plugin but am getting the same error over and over again. In step 2 of the signup process the user is asked to select a level. I get the list of membership levels but no way for the user to select them (see screenshot). Is there a setting I've missed?

How do I set up the membership plugin for new blog subscriptions? I'm not using this for content access subscriptions but using WordPress 3.0.4. multi-site as a blog subscription service like edublog. Help is appreciated.

Also, how do you purge a deactivated user from the database?