The selected object or group can now be moved, rotated, or scaled with the cursor keys.
 

WED - block and surface flags

Block and surface flags, like detail or smooth, can now be applied to all blocks of the selected group through the group properties panel.
 

Terrain and model mipmapping

Terrain and model polygons are now displayed with mipmapping. To create mipmaps for a model or terrain, open the skin editor in MED and select Convert Skin->Add Mipmaps.
 

MED - New Terrain

Terrain can now be created by MED without having to import a heightmap image.