Adobe released the update to Photoshop Lightroom 1.1. The RAW processing is now on par with Adobe Camera Raw 4.1 in Photoshop CS3. Importantly the DAM capabilities have greatly improved:

• Libraries are now Catalogs and are portable.
• DNG files can have their settings updated including embedded previews.
• Virtual Copies are much better managed. This type of versioning is the future of DAM.
• File handling is more transparent. You can synchronise (update) folders.
• Metadata can store hierarchical keywords and snapshots (history) in XMP.
• Batch keywording is easier with a "spray can" and can include other metadata.

This is probably the last free update to Lightroom before a major update next year.