Content Distribution not handlind attached files/images

Hi:
I just set up the content_distribution module. Followed the readme.txt and set up one of the sites as the distributor and other as receiver.
The nodes are coming across but here are the issues:
(a) The body is not coming across as html with the formatting (see dump below). The "<" and ">" are stripped.
(b) image is not coming across, both as an image node and as a attached image. The title comes across, but no image
(c) same for attached files not coming across with the node.

Please do let me know if there is something in the settings or some such that I am missing. I seem to think so as enough folks are using the module. But I am unable to find anything on the site that seems to help.

Finally, how do you delete the nodes? Only by deleting in the distributor???

Thanks,
ZZ

Drupal 6.19
content_distributor: 6.x-2.0-beta6
node_queue: 6.x-2.11
xmlrpc: 6.x-2.4

Array
(
    [0] => Array
        (
            [nid] => 409
            [type] => student_tool
            [language] => 
            [uid] => 1
            [status] => 1
            [created] => 1342031457
            [changed] => 1342033729
            [comment] => 0
            [promote] => 0
            [moderate] => 0
            [sticky] => 0
            [tnid] => 0
            [translate] => 0
            [vid] => 414
            [revision_uid] => 1
            [title] => Testing student tool for distribution
            [body] => pThis is a test of the student tool fro distribution to other sites. Lets see if this gets creates./p
pVersion 1: Nothing else. Why is html not showing up?/p
pVersion 2: Adding an image. Image not showing up/p
            [teaser] => pThis is a test of the student tool fro distribution to other sites. Lets see if this gets creates./p
pVersion 1: Nothing else. Why is html not showing up?/p
pVersion 2: Adding an image. Image not showing up/p
            [log] =>