I just tried the workaround in its current state and only the background is drawn. If you don't want to actually see any windows on your USB display it's perfectly fine!
More seriously I can't commit to a date. We are working on it and will continue working on it until you'll see a beta 2. I don't expect any shift in priority: Lion compatibility is our #1 concern on Mac and we want to give you something working well before Lion ships.
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