New update...he's putting out several beta versions every few days, so this list will be added to as it moves closer to a final release. Thankfully, the engine is moving away from Milkshape files and using X format, now:
Quote:
Changes in WME 1.6 beta 2 (Feb 12, 2006)
* new SetTexture() method for 3D actors; you can assign either a static image or an animated WME sprite as a texture
* new standard animations for 3D actors, "TurnLeft" and "TurnRight", used when the actor is turning counter clockwise or clockwise
* new DrawBackfaces attribute for 3D actors which specifies whether the 3D model should display polygons facing away from the camera
* 3D scenes can now be setup to use 2D-based pathfinding, i.e. you can use the same way of designing blocked areas and waypoints as you would use for 2D actors; see the "Additional 3D options" chapter in the documentation for details
* if you are using multiple inventories, each inventory remembers its scroll offset, so when switching from one inventory to another the original scroll offset is restored
* new Game.InventoryScrollOffset attribute for setting and querying current scroll offset of the inventory box
* new Game.SetSceneViewport() and Scene.SetViewport() methods for changing the scene viewport at runtime
* new Game.SoundBufferSize attribute for setting the size of sound buffer used for streamed sounds/music
* the GUI buttons no longer display mouse-hover effects when game isn't in interactive state
Changes in WME 1.6 beta 1 (Feb 07, 2006)
* new format of 3D actor definition files (see the docs)
* support for Microsoft X for 3D actors
* smooth animation transitions for X files
* new demo project "wme_demo_3d_2", built on the old 3D demo, but with the new actor format
* new RightDoubleClick event
* PlayTheora() method for entities now takes Entity.Scale into account, video is scaled appropriately
* BUGFIX: Custom camera FOV is correctly restored when loading a saved game
* BUGFIX: Changes to save/load to prevent memory leak causing long save/load times under certain conditions
