deleting the block0001 and blkindex seemed to work. i am still confused how to get v1.1 tho. Unless i am mistaken help > about nyancoin > Nyancoin version v1.0.0.0-unk-geo means v1 right?
I haven't been able to find v1.1 wallets either for OS X. My v1.0 wallet seems to still be working, however, so I'm just sticking with it for the time being.