I’m deleting my Dropbox account in favor of Jungle Disk. First, the fact that Dropbox is able to view my plaintext data if I don’t encrypt it before uploading (with Truecrypt etc) worries me.
Second there was a local exploit vulnerability with Dropbox.
My third Dropbox tidbit was this article by Frank McClain on the Computer Forensics blog.
Last, and most recently, Dropbox suffered a 4 hour authentication bug where users could have logged into an account without the correct password. WTF !?
In case you still want to keep your data hosted with DropBox you need to read this: How to Encrypt Your Dropbox Files, at Least until Dropbox Wakes the F* up