The Warring States of NPF - Wormophobia support group, or the Terraria thread of all things Terraria

Update's out.

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NPC�s

There are thirty-six new monsters!
The underworld has a new master, the Wall of Flesh. Defeating him will unlock new challenges for your world.
There are three harder versions of the older bosses.
There are now three new friendly NPC�s that can be rescued after specific conditions are met.
The Dryad will now tell you the percentage of Corruption vs. Hallow in the world.
Made several small changes to allow for better underground cities.
New NPCs will spawn in their homes underground, instead of on the surface.
Worms will no longer spawn when near a friendly NPC.
Underground towns will now reduce, and eventually stop, enemy spawning.

Items

Added thirty-nine statues that are scattered around the world. Some of them do special things when activated with mechanics!
Star Cannon : Shoots faster.
Sandgun : Sand shot from it does more damage, and it shoots faster.
Blowpipe : Now listed as ranged.
Goblins no longer drop rocket boots during an invasion. Instead they are sold by a new NPC that can be rescued underground after the player has defeated the Goblin Army.
Boomerang type weapons are listed as melee.
Added four new armor sets. Each set has different helms that give bonuses to melee, ranged, or magic, respectively.
There are twenty-one new accessories.
Weapons and accessories can now have random conditions that modify their stats. These conditions can be changed for a price by visiting a new NPC.
The crafting requirements for Molten and Jungle gear have been reduced.
Some accessories can now be combined at a Tinkerer�s Workshop.
Colored Torches can now be crafted out of Gems and Torches.
Added Mannequins that are crafted out of wood. Place armor on them for decoration/storage.
Added the Wrench to place wires.
Added Wire Cutters to remove wires.
Added Pressure Plates, Switches, and Timers to activate devices.
Added Music Boxes that record and play in-game music.
Added Pumps to transport liquids.
Added loads of other new items and weapons waiting to be found!
Putting the Guide Voodoo Doll in lava is now a bad idea...or is it?

Lighting / Display

Terraria now has smooth, colored lighting! You can toggle between the four lighting modes: Color, White, Retro, and Trippy in the Options Menu or by pressing F7.
Made several lighting and display optimizations to increase game performance.
Added automatic graphic quality adjustment based on the game�s frame rate. This setting can be toggled in the Options Menu.

Multiplayer

Fixed a problem with item syncing for newly connected players.
Fixed a bug that caused graphical issues for player�s using automatic weapons.
Added a limit to how often the server can broadcast NPC update packets. This prevents NPC�s from trying to update every cycle which would cause massive amounts of lag.
Reduced the amount of data needed to transmit tiles down to 25%.
The server now only broadcasts tile data to the players who need it.
The server now withholds some NPC, player, and projectile packets based on player distance from them.
Fixed a bug where water is consumed when a player cures Corruption with Purification Powder while standing in water.

World

Above ground tunnels may now be created during world gen.
Smashing Demon Altars with a special item will cause new ore to appear around the world.
Defeating the hell boss will now increase the difficulty of the world. Harder monsters will spawn, and the Corruption�s rate of spread will be greatly increased.
Defeating the hell boss will allow the Corruption to spread underground, over sand, stone, and Sunflowers, and through Jungles, destroying them if you let it!
There is a new biome, The Hallow, that will be created when the hell boss is defeated.
Removed obsolete lighting code, reducing both RAM usage and world save file sizes.
Added several small features to world gen.
Tweaked the way and amount of Underground Mushroom biome spawn.
Demon Torches now appear in shelters generated in the underworld.
Underground cabins may randomly spawn around chests.
Different styles of wall can now be placed next to one another without showing the background between them, allowing for more creative building.
When nearing the top of the world, the player will now leave the atmosphere and be less affected by gravity.
There are now three types of traps that are generated underground. Watch your step!
Cacti no longer damage players.

Game Interface

Items being held by the mouse will now be used by left clicking. This allows the player to place objects without putting them on the hotbar. Right clicking will now drop the item.
Placing objects on grass will now destroy the grass.
The crafting menu now scales to fit the size of the screen.
When the inventory is open, the number of the selected item in the hotbar will appear in green.
There is a new NPC housing interface that can be used to assign living areas to NPC�s. This interface will also tell you if a room is missing any requirements.

Misc

There is a new music track for The Hallow biome.
Underground Corruption has its own music track.
Underground Hallow has its own music track.
There are two new boss music tracks.
Greatly reduced world save file sizes.
Decreased tile frame detection time by 15%.
Your trash can is now emptied when you die.
Added an auto select hotkey that will pick a tool from the player�s inventory based on what their mouse is hovering over. This defaults to Left Shift.
All players will now leave behind tombstones when killed.
There is now a random option in the player creation menu.
Female players now have separate armor graphics.
Added a new mechanical system! Holding a mechanical item will display the wire grid to create interesting new devices.
There are new overworld backgrounds for each biome!

Bug Fixes

Fixed a bug that would cause the server to think a player is dead if he/she reaches 1 HP without dying.
Fixed a bug that wouldn�t allow players to craft from the ammo slot.
Fixed a bug that would crash the game when player tried to draw water outside the bounds of the world.
Fixed a bug that would cause mana regen to ignore stat bonuses given by armor or accessories
Fixed a bug that would sometimes cause the game to crash when growing Underground Jungle grass.
Wooden Platforms no longer attach to non-solid objects.
Placing and removing items during the placing animation will no longer destroy the item when it is collected.
Fixed a bug that would cause graphical abnormalities when the lighting changes dramatically.
The FPS display (F10) shows the correct number.
Fixed a bug that swapped the lighting of players pants and head armor.
Fixed a problem that would cause water to settle in strange positions.
Fixed a problem that caused objects with transparency to appear darker than they should.