That is very odd.
The code currently works on MATLAB 6.5 (R13) and 7.9 (R2009b) for Mac. I have provided a Matlab-figure of how it should look by calling
imagesc(ROFdenoise(imread('noisy.jpg'),25))
colormap(gray)
ref: http://www.2shared.com/uploadComplete.jsp?sId=gjAZU4pW32iqk76w
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