Yes, this is a bug in 1.0.

It will be fixed in the next update. 

There's already an option to show tab characters. Spaces are currently not shown.

This sounds like a sandboxing error. Do you get see an error message in the Console app?

Thanks, I'll see what I can do.

You can just use the regular Mac OS X Dropbox client and save files in your Dropbox folder. Am I missing something?

To add that, I'd have to remove an existing key to make room for such a key. I couldn't find one that I could easily remove without an uproar from existing users. :)