This is just a guess, but are you storing any type of game data or status in a file?
If yes, do you test that the app handles the case where it is being run for the very first time and the file does not exist.
When you start the Corona Simulator it prints out a message telling you where the sandbox is. It looks like this.
Copyright © 2009-2011 A n s c a , I n c .
Version: 2.0.0
Build: 2011.681
The file sandbox for this project is located at the following folder:
(/Users/lbp/Library/Application Support/Corona Simulator/crowdedgarden11F8F2F6F669E605DA5BABB653474B07CF)
Try going to that directory and deleting everything and restarting the simulator.
If you use xcode to install on device, try deleting old version before installing new version. If you let xcode replace an existing app, any files the app created will be preserved. If you delete the app first, the files will be deleted.
What version of director are you using? What corona build?
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