Same problem here...
The plugin is really awsome. But I got this problem:
My Menu:
- Home
- Page1
-- Subpage1.1
-- Subpage1.2
- Page2
...
In the WordPress-Settings I choosed Subpage1.1 as article page (Settings -> Reading -> Posts page). Subpage1.1 shows the blogrol correctly. When I click "read more" on a post, the menu loses the reference. It looks like:
- Home
- Page1
- Page2
...
Like Grezvany13 told before, with the widget-settings 'Show hierarchy' to 'Display All' it works.