A bug fix patch has been uploaded. Run the Leadwerks updater to download the new files. You may need to update projects (see File > Project Manager) and recompiled.

Recent bug fixes can be viewed here:

http://www.leadwerks.com/werkspace/forum/80-bug-reports/

Additionally, the following improvements were made:

• Physics interpolation will be much smoother now.
  
• Character controller was adjusted, works great on terrain.
  
• A bug in the PhysicsSetRotation() command was fixed, though it was not reported.
  
• Terrain will appear much nicer since normal mapping is working properly now.