Are you able to reproduce this problem? I am trying to figure out why it doesn’t work, on my test install, it seems to work fine. Having said that, I only can test it with a limited pool of IP.
Try banning them using .htaccess as well http://blamcast.net/articles/block-bots-hotlinking-ban-ip-htaccess
@lester – I’ve noticed the same problem on mine. The IP address 195.189.249.105 is one I’ve noticed that doesn’t seem to be blocked, despite being added to the “Banned IPs:” section of the plugin on its own line.
I don’t know what makes it special. Other IPs seem to be blocked but every now and then ones like the above seem to slip through.