The Notational Velocity Release Notes

"Edit With..." menu for editing in WriteRoom, TextMate, etc., for all DB storage options
Indentation is preserved for lists created in TextEdit and Pages (Thanks to tewe)
No longer crashes when reading external files containing illegal Unicode characters
No longer crashes when syncing to Simplenote on Mac OS X 10.7 Lion Preview
Japanese font-substituted characters now display properly as tags
Searching by title could fail on some system localizations
Simplified single-line list display in horizontal layout
Control-J/K and Control-P/N now also switch between notes (from Christopher Sexton)
NV should use less memory when dealing with many tagged notes
"NV: New Note With Selection" Services menu item is properly localized
Italian localization courtesy of Paolo Tramannoni
Chinese Simplified localization courtesy of Tunghsiao Liu

New AdditionsRead the blog post

Behavior Changes

The activate-NV hotkey will switch back to the previous OS X Space
"Deleted" notes are moved to the trash when stored as separate files
Titles that match the search terms exactly are autocompleted first
Command-Delete deletes lines in the body, and the whole note elsewhere
"Copy basic styles from other apps" option applies to imported URLs
The Underline style is no longer included.
The leading text of automatically-titled notes is initially selected for easy deletion
Imported files are titled after the first line in some circumstances
The tab key now right-shifts multiple-line selections and bullets only
Back-tab can be used to de-indent automatically-formatted list-bullets
Pressing tab in the search/title field autocompletes notes manually
Styles are reset after adding a new line

Fixes

Certain diacritics could prevent note-titles from matching a search (from Mikael Pettersson)
Secure text entry should be active only while NV is in the foreground
More accurate URL detection using Adium's AutoHyperlinks framework
Certain types of proxy servers may no longer interfere with Simplenote
Existing file extensions of notes are preserved if they are compatible
Better detection of renamed files in the case of Dropbox
The "externally deleted files" alert is more accurate and less annoying
Unsynchronized notes are uploaded to Simplenote before machine sleep
Text and URLs dragged onto the application icon are also now imported
Note-files opened externally in NV are selected instead of imported
File system changes to the notes folder are detected more reliably
Hidden or internal files will no longer appear in the list of notes
Avoids a problem in which changes made by Dropbox were not seen

Completely and expertly localized into French by David Bosman
Fixed a sync bug: newly-created notes would remain if the deletion occurred too soon
Unsynchronized changes are detected and handled more reliably upon quitting
Properly handles receiving corrupt JSON data
File extensions (for separate-files storage) are always hidden upon saving
Copy/paste now works with the Dvorak - Qwerty CMD keyboard layout
Fixed an issue which could sometimes prevent tabs from being inserted
Soft-tabbed-editing is no longer required for syncing, but spaces are still used on upload
Additional state is preserved between launches, and the search/title field is always selected

Fully integrated and robust Simplenote synchronization
New look, with visual indication of searching/creating and a clear button
Re-added note-body previews from version 1.x and made them optional
Creation and modification dates are always kept in sync when using separate files
Better synchronization with WriteRoom/SimpleText.ws via SimpleText for Mac
Automatic text replacement option added for Snow Leopard
Changed the behavior of the application shortcut key to both show and hide
Column resizing is more natural
Tab key default behavior is more intuitive
Command-Left/Right move between title/body fields when cursor is at the start/end
New icon by Colin Cody
Mac OS X 10.3 Panther is no longer supported
Fixed a number of bugs

Fully 64-bit native (thanks to Brian Bergstrand)
Added "New Note With Selection" Services menu item
Fixed a bug with accent keys in certain keyboard layouts
The default encoding for text files is now UTF-8. Notes using the system encoding will be upgraded.
Extended attributes are used to provide text encoding hints to QuickLook and TextEdit.
The Import menu item command allows using the file creation date as the "Date Added".
Fixed a sorting issue when the sorting column was hidden
Deleting part of an auto-completed title will deselect the note.
Database file is verified while writing to disk to avoid corruption
Command to insert auto-generated passwords into a note (thanks to Brian Bergstrand)
Importing of tab-separated-value files (e.g., from Pastor; thanks to Brian Bergstrand)
Now using Sparkle version 1.5b6
"Show Bookmarks" menu item toggles to "Hide Bookmarks"
Allow option-dragging to copy note files when notes are stored as separate files
Many memory leaks fixed
Important note: The database format used by 2.0β1 is incompatible with 2.0β. A copy of the old database file will be moved aside for those who wish to downgrade.

Option to maintain/synchronize notes as text files for Spotlight and/or text editor access
More robust and space-efficient database with encrypted, compressed write-ahead logging
On-demand mounting of disk images and servers when loading the database
Optional AES encryption with variable-strength key derivation
Styled text editor supports font-independent formatting, an alternative to "rich text"
Partial word-by-word or full-phrase searching
Highlighting of found words
Multiple-note selections and sorting by different criteria
Support for input methods and unicode searching
Basic support for editing structured text and code
Per-note undo histories
Importing of additional file types, including the Mac OS X Stickies database
"Paste clipboard as new note" command grabs the current web context
URL and email address recognition
Universal binary