Stopped working today on Lion. It seems to think I only have 1 application installed (bizarrely, Team Fortress 2). Deleting the MacUpdate folder in ~/Library/Application Support has made no difference.
Aha, after several unsuccessful Spotlight index rebuilds I spotted the problems:
1) I had cloned my drive prior to installing Lion, so Spotlight was picking up the applications in the Snow Leopard applications directory clone
2) Somehow ~/Applications had gone into the privacy preferences of Spotlight
Deleted the clone, fixed the Spotlight preferences and rebuilt the Spotlight index using sudo mdutil -E / and all is well
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MacUpdate Desktop
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1) I had cloned my drive prior to installing Lion, so Spotlight was picking up the applications in the Snow Leopard applications directory clone
2) Somehow ~/Applications had gone into the privacy preferences of Spotlight
Deleted the clone, fixed the Spotlight preferences and rebuilt the Spotlight index using sudo mdutil -E / and all is well