Schlock Mercenary vs. iOS 4.0
There have been some issues with the Schlock Mercenary app when updating to iOS 4.0, or upgrading to a new iPhone.
An update has been submitted that will fix the second issue, but the first issue is unfortunately proving more difficult to track down. In the meantime, if you delete and reinstall the application, it will start working again.
Note you should reinstall the app using the App Store app on your device, not by syncing with iTunes. When you sync with iTunes, the application data is restored, which will cause the problem to occur again.