Improved console setting. A new "log" argument to the console stanza allowing a system job's stdout/stderr to be captured to a file (only available currently for system jobs). New "setuid" and "setgid" stanzas to allow system jobs to be run under the specified UID/GID corresponding to the given name/group. Improvements to upstart-udev-bridge to handle problematic hardware(such as some batteries) that pass non-printable bytes to userspace.
A plethora of new features and updates were added, including all those from Ubuntu Natty: socket bridge, user session support, chroot support, an updated bash completion script, an updated vim syntax script, the initctl2dot script to convert initctl(8) output to GraphViz dot syntax, new "check-config" and "show-config" initctl commands, new init and initctl command-line options, a new "kill signal" stanza, support for the oom_score_adj procfs API, and improved POSIX compliance when running shell scripts.
This is a major rewrite, with very few features left unchanged. Notable highlights include the shift to D-Bus as the communication mechanism, and changes to the way jobs work.