Here is the workaround for the Olympus Camera Update crash issue under Mac O/S X 10.7 Lion.
I had installed the program under Snow Leopard (10.6) while running in 64-bit mode. Mike at Olympus suggested uninstalling it and reinstalling it under 32-bit mode. I did that, including re-downloading a fresh copy [shouldn't make a difference, but it's only a 15 Mb download....].
Running the program under 32-bit mode now sees the camera and the body/lens firmware versions.
Testing the re-install under 64-bit mode no longer results in a crash, but it does not properly communicate with the camera. You get the following error message.
Failed to communicate with the camera. (0x42000)
I've suggested to Olympus that they put a prominent note on their software download page about this workaround. I also obviously suggested that they update the camera updater so that it installs and works properly in either boot mode
Thanks to Mike at Olympus support for his assistance