General

• Open URLs by command double-clicking
• Scrollbars can be hidden when not using the mouse/trackpad
• Key repeat is back
• Drag and drop reflection image in preferences
• Scrolling now works smoothly in background windows

Terminal:

• 256 colors
• Blinking text
• Underlined text
• ASCII line drawing characters
• Set TERM (xterm/xterm-color/xterm-256color) from the preferences
• Better emulation, especially in Midnight Commander

Effects:

• New Overbright slider that is separate from Glow
• Other monitor properties have been renamed (Interlace -> Scan-Lines, Contrast -> Backlight, Line -> Retrace)

Bugfixes:

• Fixed a crash that could happen when closing windows or moving windows between multiple monitors
• Fixed a bug that could truncate long strings when copied
• Select-by-word properly understands Cyrillic characters

Terminal:

• Huge improvements in emulation accuracy
• Cathode passes all the layout tests in vttest
• Lots of bugs fixed
• Prompt never appears on the wrong line

Display:

• Option to use a custom fullscreen mode that’s nicer than Lion’s
• Framerate slider
• Positional window perspective can be disabled
• Nicer mouse cursor

Land Study, via Nicolas Sassoon

Interview with Nicolas Sassoon at DesignBoom

Via BOOOOOOOM

Cyrillic

• Cyrillic glyphs are now available.
• Classic fonts have been updated.

Performance Improvements

• New multi-threaded renderer gives smoother framerates.
• CPU and battery utilization have been reduced.
• Window resizing feels like butter.
• Fullscreen and background windows are less taxing on the system.

Bugfixes

• Fixed some minor rendering glitches.
• Fixed a bug that was breaking some function keys.
• Fixed a bug that was preventing individual sounds from being disabled.
• Added a setting to disable all sounds.

Via YOUrban

Text Editor

• You can now view and edit plain text files without an underlying terminal.
• Use “Open” or “New Editor” in the file menu.
• Supports standard Mac OS keyboard shortcuts for text navigation.
• Uses standard Mac OS open/save panels and change tracking.

Sound Effects

• New section of the Preferences for customizing sounds.
• Categories:
• Startup chimes
• Ambient fan, hard drive, and CPU sounds
• Scroll feedback
• Character entry clicks
• Error beeps
• Modem noise

Custom Screen Reflection

• Use your webcam to take a static reflection photo of your environment.
• This is the most requested feature of all time.

Terminal

• Pasted text is no longer escaped with slashes.
• Use the option key and left/right arrows to move by word at the shell prompt.
• Fixed a bug that was causing copied text to be cropped.
• Fixed a crash caused by unexpected unicode characters.
• Removed some asserts that were accidentally left enabled in release builds.

Features

• Lion-style fullscreen experience.
• Shift + page up/down now work like in Terminal.app.
• Locale environment variables can be disabled.
• Open any image file to generate ascii art.

Bugfixes

• Keyboard combos for international characters have been restored.
• Cursor disappearing bug has been fixed.
• Issuing an exit command in a fullscreen window now works.
• Terminal emulation continues to improve.

Scrollbars

• Shown as needed, just like iOS and Mac OS X Lion
• Nice looks that don’t interfere with the mood

Live Resizing

• New setting for linking column and row count to window size.

Integrated Graphics Cards

• Support for many on-board graphics cards from Intel
• Tested and working on the 2011 13″ MacBook Pro, among others

Command Files

• Launch “.command” files from the finder
• Can contain shell scripts or simple commands
• Relaunch from the “Open Recent” menu

Terminal Options

• New “Terminal” section in Preferences (some options have moved)
• Close on exit
• Delete sends Ctrl-H
• Scroll on input
• Dynamically change the scrollback buffer size

Bugfixes

• Fixed a crash that was occurring on Asian language systems
• More accurate terminal emulation