Lion & Mountain Lion

The Air Display drivers run well on OS X 10.7+, except for issues on a few models:

On 15" and 17" late-2008 through mid-2009 MacBook Pro models, drag-drop is broken unless you employ this workaround: After every Login or Restart, you will need to Sleep and Wake the computer.

On 15" and 17" Mid 2010 MacBook Pro models, the system will sleep even when in use. The workaround is simply this: Set the Sleep setting to NEVER, and enable Display Sleep instead.