Actually, it has never been fixed from my perspective, but it works for a single download, just not a queue.
If you add more downloads than the program is set to download simultaneously, the queued downloads will not start, but will instead give you the error I described earlier.
Hitting Control-W will cause the downloads to start to work, but it's still annoying to check back and find that not everything is downloaded if you're trying to rip a bunch of stuff at once for later viewing and deciding what to keep and what to toss.
Queue size no longer seems to matter since the start of the year, just a sort of timeout similar to downloading files from a Yahoo Group (not with Freerapid).