In order for WP Auctions to be correctly configured you MUST set the “Auction Engine”. Your three choices are “Standard”, “Simple” and “Reverse”.
To select your Auction Engine, click on the drop down box and select the engine you want to work with. You must literally click the drop down to select it, even if the default is set to “Standard”. Once you’ve selected it, and set your other settings, click on “Update Options”.
If you see the notice again, click on Update Options one more time.
Please note you cannot change your Auction Engine while you have live auctions on the site.