Here are the release notes:

Terminal

  • Many layout glitches have been solved -particularily in emacs
  • Fixed a bug that was causing text to overwrite rather than insert
  • Dark grey text is now visible

Rendering

  • Choose between Minimal, Low, Medium, and High rendering modes
  • Moving effect sliders down to 0 improves performance
  • Selection is visible for black text on a white background

Other

  • Supports Mac OS X 10.8 Mountain Lion
  • ARC and modern Objective-C used under the hood
  • No more crashes when deleting shortcuts

Here are the release notes:

General

  • Documents and windows are restored between app launches
  • Text documents use auto-saving on Mac OS 10.7
  • New menus for controlling fonts, colors, and themes

Favorites

  • Common commands can be stored as Favorites
  • Favorites can be launched with keyboard shortcuts

Keyboard and Mouse

  • Middle click copies selected text, or pastes the clipboard
  • PageUp/PageDown/Home/End keys can send custom control codes

Video

  • A new “Camera” mode for converting live video feeds to ASCII art (see the Favorites menu)

Rendering

  • New “minimal” rendering mode (“low” and “medium” coming soon)
  • Smoother fluid mode resizing

Bugs

  • Terminal no longer resizes when starting “screen”
  • Fixed a bug that was inverting text incorrectly
  • No more mouse cursor drawing conflicts
  • DISPLAY envar is now properly set