Work continues with the Spotlight implementation. I have MacJournal writing out the "special" files to disk and I have the importer written, but they aren't hooked up to each other right yet. Spotlight and LaunchServices work well when things don't change that much, but in a development environment it is easy to confuse both of them when you're changing things every few minutes. I don't have anything hooked up for encrypted journals yet, but I imagine there will be an option similar to Mail's "Index decrypted messages for searching." Any locked journal will be removed from the metadata cache, but there will be an option to never include encrypted journals even if they are unlocked (which will probably be the default behavior). I don't know if all of this will get rolled into 3.1.1 or a later update mostly because I want to get 3.1.1 out by next week and this stuff needs to bake more before it gets released.
I also have some preliminary work done on the syncing support, but the Spotlight action is much farther ahead. All I have there is the description of the data to be stored on the server; none of the client-side work is done. It turns out a large portion of developing software on Mac OS X is editing property lists to a specific format, so there's a lot of that ahead of me before the syncing will work. More on that as it evolves.