Received this info from Chris Bridges. Here is what he says in his Bashing in Minds blog:
I also am not exaggerating when I say that when I upgraded to iOS5 this morning, my displeasure at finding out that Stanza no longer works was epic, loud and very likely offensive in a family setting. Just error after error, no way to open a book, nothing. Imagine a heroin user being told that needles don’t work any more and he’d have to find another way to get the stuff into his veins, and you’d have the general idea.
A quick Google search revealed this was a known problem among beta-testers and that there is very likely no update coming since a) Amazon bought Lexcycle and doesn’t really have any motivation to improve their competing product and b) the developers no longer work for Amazon anyway. I hope I’m wrong and it updates anyway, but now I have to find another ebook reader, and this is going to be tough because I’ve tried them all as they come out and not a single one combines the features I want as elegantly as Stanza, an app that hasn’t had a significant update in two years.