Yeah, it only adjusts the volume gain -- it's the same thing as having the volume knob automatically turn depending on which song is playing or something. If there are no dynamics in the master itself, it can't do anything for that. The sound has already been mixed that way and you can't really fix it with processing after the fact. (Only sort of attempt to simulate it a bit.)
Also, you should only use MP3Gain when you have to. Unfortunately, adoption of ReplayGain outside of PC audio players is pretty bad, so you do probably have to use it for portable devices, games, and etc, but if you're talking about PC audio players, you shouldn't be using it. It does actually physically modify the gain values inside the MP3 file itself, so it's actually modifying the audio file in a semi-permanent manner (it saves tags with undo data, but you have to be careful as something can overwrite or remove those tags.)
BTW, on that note, PowerAMP on the Android platform has just added ReplayGain support in with the new major version update a while back.