Yep.
* Delay/repeater blocks
* Beds
* Added three new half-size blocks (Wooden Plank, Cobblestone, Sandstone)
* Slimes have a higher spawn rate (confirm?)
* New Mojang logo
* Graphics settings screen
* Ability to toggle between classic lighting and "smooth" lighting
* Regions now use the McRegion format, with built-in auto conversion
* While starting a new world, players can choose their own name and seed to generate the world
* More than 5 Worlds possible
* Added whitelisting to the server. To use, enter “whitelist <cmd>” where cmd is “on”, “off”, “add <player>”, “remove <player>”, “list” or “reload”
* F1 now toggles
* F3 now toggles
* When F3 is pressed, mobs display a number over their head. This number appears to be unique for each mob. (more info?)
* F8 toggles mouse smoothing
* In 3rd person mode, character can be visibly seen to bob side to side when you walk (only when View Bobbing is enabled).
* Sandstone is now found at the bottom of naturally generated sand.
* All pressure plates now require two of its materials, instead of 3. The new stone slabs are now created by using 3 of the materials (see specific block pages for further information)
* Mine time for Sandstone decreased.
* Redstone dust will get darker the farther away it is from a source of power.
* New painting added of a flaming skull.
* Some blocks of ice have curved edges.
* Blocks break slower while in air.
* Less passive Mobs when on harder modes (?)
Bugfixes:
* When breaking double slabs (one slab placed on another) it will drop two slabs instead of one.
* Wood and logs don't burn forever anymore.
* F1 in 3rd person mode no longer flips view
New Bugs:
* Game may crash upon entering the Nether. When you reload you will be at spawn with no items.
* Some users reporting worlds getting deleted (confirm?). Deletion may be caused by use of mods from 1.2 that have not updated.
* Levers can be placed on the bottom of a block, as long as there is an open space, and a block horizontal to the open space. The lever will act as if placed on the horizontal block, but looks glitched, as shown here: Media:Brokenlever.png
* If someone uses their bed in SMP, other players may get disconnected. (Un-Recognisable Packet ID: 17)
* Wooden Slabs are best mined with pickaxe, not an axe.
* Zombies cannot hurt players unless they are above them.
* If you toggle F3 (Debug Interface), and leave your world/server, the FPS tracker will stay with you in the main menus.
* Large chests may cause crashes when opening them (Unconfirmed: crashes may be caused by use of mods from 1.2 that have not updated).
* You cannot place two different half-size blocks one above another (space is created between them)