Maybe I'm doing something wrong, but I had to put something more like
in my .vimrc to make this script work.
Also version 0.1 has a bug in line 174 - the double quotes in "\S" should be single quotes '\S'. This bug causes files without comment headers to incorrectly get folded up to the first comment.
Unable to contact the author (email address isn't valid anymore), so uploaded slightly updated version here. --November 2, 2014