This update is mostly bug fixes and some tweaks to the battle/unit ability mechanics. It is a little smaller than the updates usually are, but there a lots of interesting things in the pipeline, and the next couple of updates should have a lot more 'meat'. As mentioned, the graphical overhaul is being worked on in parallel. Here's a teaser of the new map graphics that the talented Max Heyder is currently working on:
The next update will focus on improving everything about the new combat resolution: graphics, army control, usability, and probably the first battle spells. There will also be the first steps towards localization (ie non-english languages), as there have been a lot of requests for this. Battle Mechanics:

• Units with the tag Demon or Demonic Taint now have a 5% higher chance of being affected by Radiant-type attacks and a 10% lower chance of being affected by Dark-type attacks.
• Units with the tag Angel or Celestial now have a 5% higher chance of being affected by Dark-type attacks and a 10% lower chance of being affected by Radiant-type attacks.
• Units with the Semi-Corporeal ability now have a 5% increased chance of being affected by Arcane-type attacks.
• New Attack Modifier: Aura. These attacks always hit (but can be still be resisted). The skill attribute of the attacker does not affect the resolution and the attack cannot be a critical or glancing hit.
• The formula for resolving the chance for shields blocking ranged attacks has been changed from (25 + 5*Discipline)% to (2X + X*Discipline)%. X is based on the block value of the shield (normally in the range of 1 to 5). The Shield Wall ability will add an additional 10% of blocking. Retreating units have the chance reduced to (½x*Discipline)%. If the attack is physical and (base damage+break defense) is greater than block value + 4 (8 with shieldwall), the shield block is skipped.
• Undead/Construct/Demonic removed as special abilities. Tags and other special abilities are now used to handle all effects previously linked to these.
• New Unit Ability: Mindless. Such units are unaffected by (positive and negative) morale effects and all spells/effects relating to thought and/or emotion (charm, mind-control, hypnotism, frenzy, etc.). It also confers a 2% reduced chance of being affected by Radiant and Dark-type attacks.
• New Unit Ability: Limited Mind. Similar to mindless but reduces rather than eliminates the mentioned effects.
• New Unit Ability: Unfeeling. Confers immunity to (positive and negative) morale effects and emotion-related spells/effects (charm, frenzy, berserk, etc.) but not thought-related effects (mind-control, hypnotism, etc.).

• Unit special abilities and attack special effects now have tool tips.
• Added a few more variations to the unit name generator.
• Currency name is now listed under culture details.
• Unit Ability: Amphibious now allows movement in coastal water hexes at no movement penalty.
• Unit Ability: Aquatic now allows movement in all water hexes at no movement penalty.
• New Unit Type: Liches. Can be researched with Necromancy 6, Arcane 3, and either Frost 3, Darkness 3 or Arcane 6. Can also be used as a template for dungeon bosses. Default unit size is very low, they are slow, and very difficult to damage with physical/mundane attacks. They have powerful frost-based attacks at medium range, a drain-type attack at short range, and a decent, but low skill, melee attack. They also cause terror and are fearless.
• New Unit Type: Mummies. Can be researched with Necromancy 4, Death 2, and Darkness 2. Can also be used as a template for dungeon bosses. They are slow, strong, extremely tough, but very vulnerable to fire.
• Death Knights: Now have an Aura attack with Dark damage 4.
• Tower Shield renamed to Pavise.

• Fixed the cursor being an X during battles taking place outside of the player's turn.
• Fixed wizard tower expansions under construction not being listed when clicking the "Demolish" button in the Wizard Tower window.
• Fixed issue with army general modifiers being applied multiple times.
• Fixed issue with shrines and temples causing the game to hang or end up in a corrupted state.
• Fixed issue with the "buy missing" toggle in the construction project window not working properly if the value was auto-filled and not set by the player.
• Fixed 'shore-only' units being able to venture anywhere. An army containing one or more of these units can no longer traverse fully land-locked terrain.
• Fixed issue with secondary damage not being applied properly during battle resolution.
• Fixed issue with armor penetration/resistance reduction not being applied properly in some cases during battle resolution.
• Fixed issue with line breaks in the text panels on the military window.