Check the version again to double check it was the 1/2/2011 C. I reinstall and put a freshly downloaded file over the existing just to make sure that was cleared up. So version shouldn't be the issue.

My settings are as follows:

Enable = True
User ID = "My ID"
Using Production Server
Handling = 5
Handling currently per box but was per order
Tax Class = None
Tax Basis = Shipping
Shipping Zone = None
Sort Order = 0
All packages are machinable = False
USPS Options = Show Weight
Domestic Shipping options = None Selected
International = GXG non-doc rect, Express Mail Intl, Priority Mail Intl
Debug Mode = Off

Ships from = US/08721
Ship to = Australia
Weight = 4 lbs

After reinstalling the same issue exists it is still reporting the top USPS quote in the list regardless of the selection.