I updated to v1.2 from v1.1 and I cannot get the BoxCryptor drive to work. No matter if I use an old folder that worked with v1.1 or a brand new folder made with v1.2, the same "Access is denied" error message appears. If I downgrade to v1.1, then the folder/drive works again.
I am using Windows 7 SP1 x64. I am using Dropbox v.1.3.15, but I also tested on a folder not in Dropbox (in case that was an issue). I also use Microsoft Security Essentials if that is an issue.