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It works for me when I do Shift+CMD+3 (full screen), but Shift+CMD+4 (variable size screenshot) does not work.

OSX 10.8.2 and up to date dropbox.

I fixed this bug and uploaded a bugfix release (0.9.1) to the download section: https://github.com/fwenzel/upshot/downloads

Feel free to download and replace your installation with that!

(PS: automatic updating is an upcoming feature also, but I first have to figure out how to do it :) )

Thank you, I'll look into it!