Evernote for iPhone Update to Version 1.2

Evernote updated their iPhone client to version 1.2 and added the ability to edit notes. I ran into this error (see image above) after downloading the update using iTunes though. And, I was not able to update it at all directly from my iPod touch. However, after disconnecting the USB cable, it looked like the application actually installed on my touch. Firing it up I found that the new client can only update notes that are purely text. Even a file that included hyperlinked text with no other formatting was not editable.