The 10.7.1 update is recommended for all users running OS X Lion and includes general operating system fixes that enhance the stability and compatibility of your Mac, including fixes that:
Address an issue that may cause the system to become unresponsive when playing a video in Safari
Resolve an issue that may cause system audio to stop working when using HDMI or optical audio out
Improve the reliability of Wi-Fi connections
Resolve an issue that prevents transfer of your data, settings, and compatible applications to a new Mac running OS X Lion
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