The File Menu Applet is now much faster at drawing menus, respects your Nautilus theme preferences, allows for dragging and dropping of directories, and sorts directories before files when they both appear in a directory.
In this release, preferences have actually started working. It also allows the root directory to be watched, faster viewing of menus, and gets rid of global variables in source. Directories can now be named things like ~/. Many other small bug fixes.
Fixes for file operations, cleanups to the Drag and Drop Code, a new "Open With..." menu item for choosing alternative handlers, activation of the "Change Handler Applications" menu item, and numerous bugfixes.