This update has several improvements to prepare for the Project: Vantage Village and other nice things!
There is now an option to see a "height grid" overlay when placing items in the world. This will help you place items based on the current terrain surrounding you. It is "on" for crafting items placement like large buildings (hovels, wigwams, etc..) and "off" for small item placement. However you can toggle between "on", "off", and "overlay" modes with the numpad 7 (default key).
Keep in mind, however that the terrain grid does not prevent you from placing/crafting the item in a position aside from the previous limitations. It is only a guide. You can raise/lower the terrain for your structure before or after building it, and see exactly how much extra work you may need to do :)
Animals now correctly run away from large buildings, fires and torches. You should no longer see a bear waiting for you in your hovel :)
Several other small updates to prepare for the next phase of development. I will talk about this soon!
Enjoy!