Subscribe by email plugin not working on WPMS made by Blog Templates

Any site created by new blog templates on my WPMS install cannot use thie subscreibe by email plugin.

I assume

It works on main domain
It works on new domain without new blog templates (from wpmudev)
Does not work on any other domains.

If it was a plugin main domain has all plugins enabled as on subsites

It does nto work 1.09+

going to try to roll back to earlier verions quick as well.