Assuming for the moment that it's actually working, are you using it to move apps to a partition on the card, or force move them the Froyo/Gingerbread way? In the first case then of course they'll be on the partition. In the second they'll be in .android_secure on the sd card, which is a secure area your file manager almost certainly can't look inside (will just appear empty).
As for space on the phone, do you mean you can't see where it was moved from or you don't see the phone space usage going down? How many and what size apps have you moved? It cannot move the whole app, but if you move a few you should see it start to go down.
I have to admit that while it worked fine when I played with it, it was more tempermental than an apps2sd init.d script, and it took me 2 attempts to get it working (and as far as I could see I had done nothing wrong the first time).