Just to let you guys know, for the MyKeePass app, you need to upgrade all your version 1.x (kdb) to version 2.x (kdbx) since it will no longer be supported for importing files in the latest iphone OS 4.

I tried googling for answer but since this is new and the app is no longer listed in MY store, I just tried upgrading the kdb password file to version 2 and now it works