Is there a way to run one application in Full Screen mode on one display and still be able to view and access applications on a second display?
The built in full screen (Lion) dominates both screens - and I've not been able to find any setting which lets me use the other one for anything else. 

The fix I use for this is Divvy - which enables me to maximise on each screen - but this isn't quite full screen and doesn't provide entirely the same experience. It is, however, a good compromise.