This is a pretty extensive update. I would recommend it. Here are the notes:

Lots of changes for 1.3!
1. Created an Icon layout manager for xtdesk.
2. Improved icon and menu persistence with extensions.
3. Created a GUI date/time tool. System>Set Date Time
4. Created a frugal grub install script.
5. Replaced rxvt with aterm and added transparency xshell options.
6. Updated naim.
7. Replaced Bash Burn with cdw.
8. Changed filetool.lst, xfiletool.lst, and webdata.lst to be hidden.
9. Reduced iso by stripping libraries of debug symbols
10. Many typo's have been fixed
11. Fixed 2button mouse bug
12. Adding users capability is now defaulted
13. Fixed xvesa "leftovers" bug when choosing lower resolutions
14. Fixed eth0 disable upon use of pon
15. Fixed the null menu bug upon loading certain menuless extensions
16. Deprecated the "ci" extension type
17. Added persistence to embedded user.tar.gz for uci types
18. Internet man page lookup bug fixed
19. New default theme
20. Fixed permissions in dsl-embedded for Linus files
21. Fixed reset noload flag for hard drive installed root mydsl-loading

Cool!
Oh, nuts, first I downloaded the 1.1 version, and just after it finished, I saw the 1.2vrsion came out, so I downloade that, and now you're telling me I have to dowload it AGAIN!!!!???!?

Guess you and I should start using CDRWs.

Just remember that DSL has a very fast paced development so its almost expacted that version upgrades would come out frequently. With this version I'm hoping my mouse will work, 1.2 didnt even let my cursor move, just so you know its a Trackman.

It is easy to do upgrades with a frugal install, you may want to do some research on that if you like staying with the most up to date version.