I have a Samsung Galaxy S2 to be exact. When I click on the 1password icon, it asks where is your data? And you can choose between SD card or Dropbox.
I go it to work finally. There was an issue with not being able to sync the data file to the phone. I decided to remove the application completely and reinstall, creating a new data file and restore from backup. The phone was then able to recognize the new data file and sync from there.
Thanks for that important information, its really helpful.
Here's the setup guide for 1Password for Android. Basically, you have to install 1password on your computer and then copy the file from 1password to your Android phone. I suggest moving the file over USB to your SD card.
I believe you may also want Dropbox installed, which will hold the password file in the following directory:
SDCard -> Android -> Data -> com.dropbox.android -> files -> scratch
However, in the screenshot, Dropbox has its own option. I think it will automatically locate the file if you select it.