Drag and drop works fine - took me a while to realise you have to drag down to remove an effect. I get pops and clicks unless I run the audio buffer on 20ms - which is a bit high. I'm sure I was able to run it on 10ms before the update. Sometimes I load it up and change it to 10ms and it's OK. Really miss being able to toggle effects from the 'virtual' stomp switches.
If you haven't updated yet make a backup of 1.7 - on the Mac it's under iTunes, iTunes Media, Mobile Applications. If you have got 1.7 I'd love a copy vcf2@tesco.net - thanks