This is my screenshot of CGMiner with verbose mode on.
It's showing shares submitted (to verify its over the current difficulty? ) but they are not high enough.
BTW this is PPCoin but same principals should apply.
I'm not an expert in mining (and I know nothing at all about PPCoin), but it looks like you are using Stratum Protocol. I thought Stratum Protocol was created for pool mining. I hadn't realized that you could use Stratum Protocol with solo mining.
My understanding is that with Stratum Protocol, the mining pool server can send a message to the mining client:
{ "id": null, "method": "mining.set_difficulty", "params": [2]}
to tell it what difficulty to use.