The latest update to Smile’s text expansion utility TextExpander features only bug fixes, but they may be important ones for you. Most notably, TextExpander 3.3.4 fixes an issue with updating snippets and settings via Dropbox, and works better if your Dropbox folder is not in your Home folder. The update also changes how TextExpander works when you use input methods (like Japanese or Chinese) that combine keystrokes; if that’s not a desired behavior, you can reset it using instructions in this blog post. Nested plain text snippets now take their formatting from the
snippet in which they are nested, too, and Smile fixed various interface display issues and other minor bugs. ($34.95 new, free update, 5.7 MB)
Spell Catcher is so much better than TextExpander. It does much much more.
I agree. Spell Catcher does all that expansion stuff, plus offering spell checking much better than Apple's spell catcher + even more!
I forgot to say that not only is SpellCatcher Lion compatible, it has been around since OS/7 or 8. Evan still supports it where necessary and keeps on enhancing it.