Well I just updated the install file now.
Changed step 6. With the update, you DO (yes) need to have censoring enabled in admincp.
Thread titles will now be censored as well, but will be censored regardless of the users preferences. If anyone knows how to use the replacement system for the thread titles based on if the user has selected to use censoring or not please let me know.
Thanks.
If you don't see a different step 6 then clear your cache and then try downloading again.