Paintown Engine:

• A new move list dialog shows all the attack moves for a player
• Local multiplayer co-op
• Much Improved joystick support

Paintown Editor:

• Re-organized the layout
• Onion skinning
• The background color of the animation window can be changed
• Additional convienence tools were added

Mugen Engine:

• Characters and stages are discovered in the background without having to modify select.def
• Many parser bugs were fixed

Menu:

• Menu items can be customized

Other:

• Ports to Android, PS3, Wii
• MP3 and Ogg support