Blocks now have particle effect when they are damaged either by shooting or drilling. The effect is visible when the damage is below the red line and it differs according to the type of block that is damaged (armor blocks do not have any effects). Also, we implemented camera zoom – by using the mouse wheel while in camera mode. Additionally, tool shaking has been added to world settings (enabled by default for new worlds, disabled in existing worlds). This can enable the shake when grinders or drills are used. This shake is also applied on the object that is being ground.

https://www.youtube.com/watch?v=a6qV3TxuC5w

Full list of new features and fixes: http://forums.keenswh.com/post?id=7283970

EDIT 02/06/2015:
Update 01.068.08
- added smooth transition between zoom levels
- added option to enable/disable damage effects (Options -> Video)
- fixed exception while grinding with tool shake enabled
- fixed existing camera crashes the game
- fixed camera zoom stays when in character suit
- fixed zoom while scrolling camera while in menus
- fixed bug where the player won't be kicked out of camera view when he loses ownership of it
- fixed attaching non advanced rotor head on advanced rotor