Release Notes: A "Blur" effect was added for transparent windows. Full screen mode now supports Spaces and multi-monitor setups. The locale is automatically set up in terminal sessions. Dropping a folder to the iTerm icon opens a new sesssion in the folder path. Double-clicking the tab bar now launches a new session. Bookmarks are now sorted alphabetically. Double-clicking in the bookmark window now launches a bookmark. Editing profile names is now correctly implemented. A bug that crashes iTerm when using Applescripts was fixed. Stability was greatly enhanced.
Release Notes: Major changes include compilation as a Universal Binary, a fix for problems with saving settings under 10.4, and the removal of the bouncing activity icon.