i upgraded to iLife '08 and then my sound stopped working... internal speakers were not listed in my sound preferences. during the iLife install the machine deleted some of my system caches. i uninstalled Psst & the sound came back... could have been a coincidence but if someone else has the same combination maybe removing may be worth a try. i didn't try to re-install it.
[Version 2.1.1]
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Psst