Hi there. I can confirm this is working in s2Member v2.9.4+, including s2Member v3.0+.
Are you sure that you've got the right List IDs?
Also check your API Key, just to make sure it's correct.
If you're sure that both of these configuration values are correct, please make sure that your server has allow_url_fopen enabled. You can check this by creating a new PHP file, name it: phpinfo.php. Inside that file, put the following line:
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<?php phpinfo(); ?>
Upload the file, and open the page in a browser. Search for allow_url_fopen and see if it's enabled. If it's off, that is the problem. If you're on GoDaddy, this is probably the case. GoDaddy disables this by default, you have to turn it on. Try creating a new file, name it:
php.ini, and inside put this line:
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allow_url_fopen = on
Upload php.ini to the public_html directory for your site, via FTP.