No update occurs

I am trying this module but not update occurs, JQuery stays 1.2.6
Looking at the files in the replace folder, they seem to be 1.2.6 actually, instead of the advertised 1.3.2

1) Should I change them myself? The readme file expressly says that nothing has to be done apart enabling the module
2) If yes, why are these 1.2.6 files shipped with a module that is suppose to update to 1.3.2?
3) I tried to replace the jquery files with the correct 1.3.2, version, but the status page reports "0" as the jquery version, and Drupal beahave as with 1.2.6
4) what prevent us to update to any recent version of JQUery (1.3.2 is already so aged!) by uploading the corresponding jquery.js?

Thanks for help and clarification