I have selected both: Schedule Failed Builds Regularly as well as Schedule Failed Builds with Retry Interval set to 1 and Max Retries set to 5. I have no other options set, and am calling a Windows Batch Script against a Windows machine with a simple "exit 1" to get it Fail yet it never retries. I am currently running 1.430 and remember this plugin working prior to 1.415 at least.

UPDATE 08/23/11
I have found that this plugin works as intended as long as the project is a "free-style software project". If it is a multi-configuration project, it does not work. I'm hoping this is not by design, because I have multiconfiguration projects where I'd like the job to restart for all of my slaves if one fails!