Actually, I'm on 2.9 but it's not an option yet.
This is a new conflict with WP 2.9 because it worked before I upgraded (I even checked another blog that isn't upgraded yet to make sure).
The plugin seems to work fine otherwise, and I haven't noticed any other conflicts as of yet, but it definitely affects the theme editor. When I try to edit a file it gives me a "Sorry, this file cannot be edited" error.
I deactivated all plugins and tested them all - this is the one that causes it. Would love a fix!