ader.globalMaximumLOD.
RenderQueue can be set per-material from script, see Material.renderQueue.
Optimized rendering internals.
Shader compilation is about 3x faster now!
Added #pragma exclude_renderers and #pragma only_renderers directives to shader compiler, to be able to write D3D-only and OpenGL-only shader paths.
Optimized UnityGUI rendering, now it generates less vertices when it can.
NVPerfHUD is supported in Windows standalone games.

Web Player:
Google Chrome browser support (had input problems and crashes on early versions of Chrome).
Internet Explorer 8 support (had input problems when running on Vista).
Windows Web Players have much more stable frame rate.

Editor:
Asset Server client interface completely rewritten. Change-set based interface, log history, and so on!
Scene view can visualize overdraw & optimal texture resolutions (added to RGB/Alpha mode popup).
FBX importing libraries updated to latest version. Fixes lots of issues with FBX, Collada, OBJ, DXF file importing.
FBX user properties are exposed to asset post-processing scripts, see AssetPostprocessor.OnPostprocessGameObjectWithUserProperties.
Added Global transformation tools mode.
Game view Stats window displays frame time and frames per second.
Arrays of enums are properly shown in Inspector.
Added "Show Project Wizard when launching" option to Preferences.
Custom Script/Image editing applications are remembered in Preferences.
Added Terrain wind tint color to terrain settings. Previously it was a hardcoded value.
Added gizmo for Spring Joint and improved gizmos of other joints.
Make default setting for "Recalculate Normals" be off in mesh importer.
Added prOGREss bars for import/export package operations.

Other Improvements:
Application.targetFrameRate. If you want to cap the maximum frame rate to save the planet - now you can!
AnimationClipCurveData has target variable now.
Improved UnityGUI text fields. Now they scroll with cursor if content is too large to fit; selection and cursor display were improved.
Unity on Windows is "large address aware" - so on 64 bit Windows it can use up to 4GB of memory.
Licensing changes: Unity Indie can build standalone games for any platform (they will show splash screen). Unity Indie builds web players with a watermark that goes away after a short period of time.

Bug Fixes

Editor Fixes:
Fixed Character Kerning inspector for custom fonts.
Fix error message when importing Font from a FAT32 filesystem on OS X
Fixed Rotate tool handle location changing with com