Feb 6, 2012 – Apple has fixed the issue! You are now safe to update as long as the version shows 1.1. See screenshot below.

Feb 2, 2012 – Yesterday afternoon Apple released “Security Update 2012-001” for Snow Leopard. We strongly recommend that you DO NOT install this update. We have discovered that this update causes Diamond to crash when an Open or Save dialog is prompted. This will affect several places in Diamond including, backup, importing, selecting a label command file, print dialog, etc.
To fully prevent the update, please select the update in the Software Updates window and go to Update>Ignore Update. See screenshot below.
We, and several other software companies, have submitted bug reports to Apple as this is something they will need to fix on their end.
We apologize for any inconvenience this may have caused you.

The following Areas are confirmed to be broken:
-Backups
-Print dialogue for a processed invoice
-Use shipping file – crash
-Gift cards for GC Link – crash, you can manually enter the path
-Customer label file – crash
-USB receipt logo – freezes
-Full Size Invoice Logo – crash
-Rewards Logo File – crash
-Print Ending Tills – freezes won’t even print with automatic print selector
-Import File – crash
-Choosing logo path – crash
-Anything from scripts – crash
-Trying to select a web gateway – crash
-Import Physical Inventory – crash
-Print Today’s Payments – freeze
-Nothing goes to disc file – crash
-Hot Folder Path – crash, you can manually enter this path
-Print Settings – freezes