It's not working for me either. PyPlot will plot to an external window but I can't seem to get it to plot inline in the notebook. I've even tried other input arguments as well with no luck.
ipython notebook --matplotlib=qt --profile=julia
In my case the problem turned out to be my .juliarc.jl file. My guess is that loading PyPlot there had caused plots to be plotted in a separate window. The result of the same command are still "qt4agg".