Excellent, I guess I should have looked at the code and not at Arduino's help page.
So, to fix the ISRBlink example, if you change line 10 to this:
Timer1.attachInterrupt( timerIsr,200000 ); // attach the service routine here
You will get the LED to blink.
The Timer1.read() still seems to return all zeroes, which does not seem right to me.