After upgrading to PhotoSmith 1.04 for the iPad, it became unusable, not rendering a full screen image just a small thumbnail.
While waiting for the bug fix 1.05 that the developers have already released to Apple, I tried several things to fix it myself.
I managed to fix it by deleting the application, rebooting the iPad and re-installing the app to the iPad. Its now working again for me.
Already available is an updated Lightroom plug-in. Keep up the good work guys.