Ah, gotcha. No, subscribing to somebody puts their entries on your reading page (http://forwish.dreamwidth.org/read) -- if you want to get notifications in email when someone updates, you have to explicitly go and track their account (there's a link for it on each person's profile).

The tracking/notification system is pretty intensive in terms of the load it puts on our servers, which is why the limit on how many items you can track. Paid users can track more items (and premium paid users can track even more), but we have to limit how many items free accounts can track because too many tracking subscriptions can make the site fall down go boom. Sorry!