WooWhoo! Success! The version 0.3 fixed my search which started working right away. My book downloads however, still did not work. But I have discovered why and once again it was my own stupid fault...
The section that was causing my problems was the Calibre Directory at the top:
* The directory containing calibre's metadata.db file, with sub-directories
* containing all the formats.
* If this directory starts with a / EPUB download will only work with Nginx
* and the calibre_internal_directory has to be set properly
* BEWARE : it has to end with a /
$config['calibre_directory'] = './';
I was reading too much into this and thought the variable wanted the full path. On my server I have all of my books including the Calibre database in a subfolder called "books" within my web root which looks like this:
when you clearly say to use the "directory" which would look like this:
Now it works! Not only can I search my collection for a specific e-book, but I can also download it straight to my e-reader. Hooray! Thanks for your help
Oh, by the way this is running on Apache2 and I use MegaReader as my e-reader and everything is working.