Ok. I'll keep a watch and see if I can see any other errors or clues as to what's happening.
Edit: As soon as I had posted this, I checked the status using the dropbox.py tool in the console, and got this:
sh-4.3# su nobody -c 'dropbox.py status'
Traceback (most recent call last):
File "/usr/local/bin/dropbox.py", line 1612, in <module>
ret = main(sys.argv)
File "/usr/local/bin/dropbox.py", line 1601, in main
result = commands[argv[i]](argv[i+1:])
File "/usr/local/bin/dropbox.py", line 786, in newmeth
return meth(*n, **kw)
File "/usr/local/bin/dropbox.py", line 1263, in status
console_print(line)
File "/usr/local/bin/dropbox.py", line 135, in console_print
f.write(st.encode(enc))
UnicodeEncodeError: 'ascii' codec can't encode character u'\u2022' in position 21: ordinal not in range(128)
I'm not sure if it is related or not.