Did a clean install of OS X Lion yesterday and installed Cyberduck 4.2. External edit didn't work - files downloaded and editor opened, but Cyberduck didn't recognise and reupload when they were saved.
Two different editors tested to confirm problem was with Cyberduck.
Uninstalled 4.2 and installed 4.1.3 and it now works fine.
Many thanks. Great program, will donate!
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