Yea that software won't kick people who are not whitelisted when you activate it.
For the second part I'm not sure. Try to open the whitelister windows and look at what its written there when someone getting kick.
We did manage to make it work properly but we stop using it. It was using too many resources for the server and the whitelist software to run at the same time.
We used Gotcha for a while which is buggy too but we were able to have the whitelist working properly.
We are currently using TSW anti-hack system on our server and I saw a whitelist feature in it. never tried it...
One of our admin coded in .net our own whitelist program which is working fine but is not for sale.