Hi,

I guess both of you installed MacFUSE 2.0.3 (the last official version). This 
version is not compatible with Lion at all. Besides the preference pane nothing 
has been installed.

You have basically two options: Install OSXFUSE, a successor of MacFUSE or 
install a newer but unofficial version of MacFUSE. The official MacFUSE project 
is dead.

Please read this thread: 
http://groups.google.com/group/macfuse/browse_thread/thread/856d073819b35586

Regards,
Benjamin

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