iWeb 2.0.3 update
In addition to releasing the iWork update last night, the updated status on MacBook Air and Apple TV today; Apple just now issued an update for iWeb '08. In Apple's normal long-winded explanation of the update, they say "This update addresses compatibility with Mac OS X."
The 17.2 MB iWeb 2.0.3 update can be downloaded through Software Update (Apple Menu > Software Update) or by downloading the update package from Apple's support downloads website.
Thanks, Adam!