My initial observations:
I'm running mostly medium settings on a middle-of-the-road PC
i7 920 @ 2.7Ghz
Ati 4890 1Gb
3GB of RAM
Win7 64-bit
I cleared cache, installed, ran a quick mission and flew around for a couple of minutes to rebuild the cache, exited and restarted the sim.
It certainly seems smoother overall, even at lower altitudes. I didn't do any number crunching yet with FPS counters, but it feels fluid and nice.
The tracers are visible at longer ranges (ricochets were already in the sim, possibly from the start, but tracer view distance is much improved in this patch).
I found one bug: the bombsight view gives some weird artifacts on the part of the screen that is outside the aiming reticule/scope. Instead of being black (the "border" of the screen around the scope), it is light gray and clouds show through it. At one point, the sea was invisible and i could see the sea floor through the bombsight
Finally, THE JU88 HAS A WORKING GYROCOMPASS!!! AWWWW YEAAAAHH

I tested it and the autopilots now work correctly (both modes). Later on i will test if the bombsight calculation algorithms are corrected as well, so that we can finally level bomb in it.
ATAG bomber flights during the weekend anyone ?