Upgraded to 1.7.0, fixed 1.6.3 crashing...
Updated to 1.7.0 which fixed the 1.6.3 crashing. My files were intact! Previous version 1.6.3 kept on crashing but I did not want to delete app since Ill lose my files. Waiting for next update salvaged my MobileStudio files. iPod Touch 1G, OS 3.1.3
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MobileStudio