URL shortening not working in Peep?

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I cannot get the HD2 Twitter client (Peep) to shorten URLs automatically, even though I have set a service in "Settings". How do I get this to work?

I notice that it does provide a shortened URL for a location link and for Twitpics (which is unnecessary), but it doesn't find a URL in the body of the tweet and shorten it.

Thanks,
Richard

Well, since we are at it... the shortener worked for me the first time I tried it, after a short lag (I had to retry some times, apparently the remote service was overloaded or something), but what I noticed is that Peep is nt able to insert a correct link to google maps when publishing your gps position. If you publish it in lat/long format it is correct, if you choose the gmaps shortcut it always points to lont/lat of 100000000/100000000 or whatever

Did the standard URL shortener work for you when you sent the message, or did you find a way of invoking it while actually composing the message?