Problem with IslandWorld and Build/Interact Permissions...

I'm setting up a MC server and want to use the IslandWorld plugin, but I am running into an issue. It seems that normal users are either able to build/interact with everywhere in the world or no-where. When IslandWorld creates their island there does not seem to be any block protection setup.

(1) I'm running a minecraft server with the latest Spigot (spigot-1.7.10.jar) since their is no updated CraftBukkit Server is available.

(2) I've reduced my plugins to just the bare minimum set I believe is required in order to make a basic system work. Installed and running I've got: PermissionsEx, Multiverse-Core (2.5), WorldEdit (5.6.3), WorldGuard (6.0.0-beta-02), CleanroomGenerator, Essentials and IslandWorld.

(3) I've scrutinized the console logs and do not find any plugins throwing errors at start-up.

(4) I've removed all existing worlds and data and let the system regen the worlds to make sure that the plugins are all synchronized (I've done this many times!).

(5) I've tested the features of WorldGuard in this configuration and it is behaving as expected when I manually create regions and add/remove users to them. From everything I've read online it appears that IslandWorld should be using WorldGuard to generate its protection regions around islands - but when I check the list of regions there are none that are created by IslandWorld around the islands.

Help Please!