We have just updated to the new version of the Community Server. It has a lot of improvements over CS 1.1. There are a lot of new features and even new applications (files repository, news aggregation, etc.) It looks more professional and is more pleasant to work with. Overall I like it. I also like the fact that upgrade went smoothly and no problems were encountered.
I didn't have a whole lot of time to look at it, but I already found some problems with the new version. It's still hard to customize how each blog is shown, individually. There are skins, but they apply to all blogs. There are no templates, like Blogger has for example. This is a big minus. To add custom features to my blog I ended up creating a skin just for my blog, that would be incompatible with other blogs. It's not the best solution.
It's impossible to specify custom blog feed. I use FeedBurner and I need to be able to supply a different source for the feed. Again, solution was to create custom style.
CS is now a richer application. It uses a lot of DHTML controls. The problem is that IE is known for leaking memory with DHTML controls. I'm not sure all the code was fixed to ensure nothing is leaked. If it has, great, if it hasn't.... It should get fixed.
P.S. Log-in fails in IE on some machines for no apparent reason. Weird bug. I hope to find solution to it soon.