Smush it! doesn't seem to do anything...

This my second WPMU and I fear I'm going to a get rep as something of a crank. My first WPMU plugin, (the comments plugin), immediately crashed my site (uploaded error log the other day; haven't heard a response). Now today I try smushit and it does nothing but turn my media center white and then add a "not processed" under every image entry.

Ok, is there something funny about my site...or what? Thanks...