It works... the 2nd app must not be running when you invoke it, and can't be in fullscreen mode. I'm happy to have that space back though!

Craig

How do I invoke the second app while it's not running while half way between two spaces. if anybody could provide some more detail about this I'd really appreciate it as I hate having that blank "fabric" space with my multi monitor setup and full screen mode.

Lion did not take anything away. You can use eg Mail exactly the same way with multiple monitors in Lion as in Snow Leopard.

It is bit like somebody gave a you second car (aka fullscreen mode for good number of Apple's own applications) without taking your first car away (non-fullscreen mode). But you like the second car so much that you complain that you want to use it but it lacks in some aspects compared to your existing car.