We've uncovered a few more issues in Lion and have been madly working on an update.
Sandvox 2.1.4 is now officially released and is available immediately for download. You can grab it using Check for Updates or download a fresh copy directly from www.karelia.com/sandvox .
We recommend that everyone update to this new version. As always, if you run into problems, please contact Karelia Support directly so that we may address issues as quickly as possible.
Here are the release notes for 2.1.4:
Correct layout of disclosure triangles in the Site Navigator
Resolves an issue where documents with large quantities of text containing an object would fail
Addresses an issue where linking an image would deselect it
Display graphic titles in Sandvox when the "Load data from the Internet" is disabled in the preferences
Handle iPhoto images dragged from the media browser when stored externally to the main library
If you are running OS X Lion, 2.1.4 or higher is what you want.