I have the exact same problem; publishing a post is posted as an activity on my timeline, not a story. I’ve turned off social publishing for now because I can’t figure out how to fix this problem. I’ve been copy-pasting my post URLs directly into a comment box to share as stories–the alternative is relegating my posts to the importance of what news story I liked today and what song I’m listening to right now.
I’ve followed all the instructions for setting up the plugin, but can’t find any mention of what I might be doing wrong.