I've experienced the same problem. I was able to fix it by logging out and rebooting the iPad and then starting the application again? However, that only lasted a few days and now nothing. The screen flashes which indicates that the image has been captured but when I start the Skitch application in doesn't show up in the Skitch window. I tried uninstalling and re-installing the application but the problem still exist. Like Ozma the other parts of the app work but the feature I used most was the screen capture. I hope the problem get fixed in the near future.