Did not work in my test — what am I doing wrong? I opened TextEdit and typed some text, then hit Command-Q to quit it without saving the doc. From then on, every time I open TextEdit it should open that doc that I never saved. Then I installed Application State Cleaner, selected TextEdit and clicked “Remove saved state for selected applications,” expecting that to kill TextEdit’s behavior of re-opening unsaved docs every time I open TextEdit. But it didn’t — Text Edit still opens that doc every time I open the app as long as I don’t save it. I even tried closing the previous unsaved doc and clicked “Don’t Save” and THEN started over again with a new unsaved TextEdit doc on the off-chance that the first time I tested Application State Cleaner it had simply frozen TextEdit’s behavior just as it was at the moment I first set Application State Cleaner (at that moment, TextEdit was REMEMBERING an unsaved doc), but this second test had no effect either. BTW, my OS 10.7.2 iMac is set to NOT “Restore windows when quitting and re-opening apps” in the ‘General’ System Preferences pane. So what am I doing wrong?

@PorkPieHat - my understanding is the "Saved Application State" has nothing to do with if a document or file is not saved (in your example TextEdit.) TextEdit is one of the few apps that seems to remember unsaved typing and offer it back up when you relaunch but again I don't thing this is what Lions Saved State is about.

Say you had TextEdit open 4 documents (previously these documents were created and edited.) Without turning off the General Pref "Restore Windows when quitting..." feature the next time you launched TextEdit all 4 of those docs would open, ready for you to work on.

Using the General Pref to turn that off means TextEdit would NOT restore those 4 saved files when you relaunched it.

When you restart and leave the Finder's question CHECK then not only would each application you left running at restart RELAUNCH but all windows for each of those apps would reopen, ready to continue working on.

I find this irritating as I am use to leaving big apps like Parallels, Photoshop and Macromedia open at restart and I do not wan them to auto-open. I am forced each time to check that Finder dialogue. So I am planning to test this and RestoreMeNot.