The primary focus of 1.04 is multiplayer balance.

Some of the features/fixes include:

Multiplayer
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* Corrected issue which caused servers to crash in rare instances.
* Corrected issue causing damage not to ramp up and down properly when using the backstab move in light saber stance.
* Corrected bug allowing players to pivot while executing backstab moves in all stances. Players may no longer pivot when executing these moves.
* Fixed bug causing force pull to be unblockable by people with equal or greater pull rank.
* Adjusted ammo usage of the Imperial repeater alt-fire.
* Fixed bug allowing inventory items to be used in FFA saber challenges.
* Corrected an exploit which allowed players to fall from large heights at a slow rate.
* Corrected issue which caused pain sounds not to play properly when hit by opponents. Pain sounds should now be relative to the amount of damage taken.

A few other notes on 1.04:

- Saved games are unaffected from 1.03
- Demos recorded using 1.03 are not compatible with 1.04
- Mod makers will have to update their mods to reflect new the IP protocol introduced in 1.04. This will be a minor adjustment to your existing mod stuffs.
- Once you upgrade to 1.04, only servers running version 1.04 will be visible in your in game browser. There may be a short period of time where there are few 1.04 servers to play on as server admins update to the new version.