Implementing option 1) would be a whole lot easier if the Dropbox API supported sync out of the box.

Is anyone aware of an existing sync implementation for the Dropbox iOS API with source code available?

I just had a look at Terra Web Browser. Seems like they use a mixture of 4.2 and the 4.1 SDK:

DTCompiler: "4.2"
DTPlatformVersion:"4.1 GM"
DTSDKName: "iphoneos4.1"
MinimumOSVersion: "3.2"

Well, I'll rather play it safe instead of having Apple reject the app.

Well, as long as this is in beta I can't submit iPad apps compiled with the 4.2 SDK but I have to use the 3.2 SDK.

But I tested version 1.1 with 4.2 beta 3 and it's working like a charm. Of course I'll be sure to submit an update as soon as Apple allows this.

That would be a pretty cool feature!

I think I found the problem. It should be fixed in the next update.

This is now possible in 1.1.

You can re-enable the GettingStarted file in settings.

The features I want to have in 1.1 are mostly implemented. I just need to add some finishing touches and thoroughly test it. I hope to submit it to the App Store this week.