- Faster performance
- Better behavior on Linux
- OS X now supported
- Icons displayed correctly
- Environment variables updated correctly when system changes
- Controly includes more items
- New shortcut keys
- New controls:

Shift+tab or Shift+bkspc deletes previous tab
Shift+Ctrl+Enter launches in elevated mode (Vista and Win7)
Down arrow shows history (when there is no current search text)
- Default skin built into executable in case no other skin is found
- Launchy now has an icon in the system tray
- Skins are simplified and easier to create
- Directory browsing auto-completes correctly