I have the Mac App Store app on 3 computers (1 Lion, 2 SL) and it acts differently on all but fully works on only one of the SL machines. On my new MBP the Mac App Store said that I had 3 updates (Sparrow, Xcode, and iPhoto) so I said "Update All". It proceeded to update Sparrow and Xcode, and then when it got to iPhoto it quit updating with no warning, and when I tried to update manually it said that it requires 10.7.2 (I have 10.7.1) so of course it would not update. I then looked again and it said that I had 3 updates (Sparrow, Xcode, and iPhoto) although it had just updated the first 2. I quit and restarted the MAc App Store and get the same results (3 updates).