- Play-by-email format has changed. Both players must use v1.04 to be compatible. IMPORTANT: Upgrading to v1.04 part way through a scenario or play-by-email is NOT recommended, due to a change in the way artillery ammunition is tracked (see below).

- Scenarios created by v1.04 cannot be loaded by PREVIOUS versions of Combat Mission.

- Artillery Forward Observers (FOs) track their ammunition by individual shells rather than by fire missions. So this will make it look at first like they now have 4 times as much ammo, but they really don't. Spotting rounds now count against ammo usage. Older scenarios are dynamically updated when loaded to account for this change.

- Tanks are less likely to target a new, not-highly-threating unit which, to engage, would require significant turret or hull rotation away from a recent, important threat.

- Tanks with no target do not automatically return turrets to face forward unless they are moving or hull-rotating.
Enemy units must be closer before full identification can be obtained.

- Mortars now have a more difficult time tracking moving targets.

- TacAI is quicker to move open-top vehicles away from mortar attack, and to recognize .50cal MGs as threats to light armor.

- Armor penetration capability for high-explosive (HE) rounds fired from high-velocity cannon has been toned down.
Tiger tank now models the varying thickness of its mantlet armor (up to 200mm in places).

- Armor penetrations by MG bullets and small AP shells are somewhat less likely to knock out the target (no change for 75mm and up). And crews of struck vehicles are less likely to bail out when no serious damage has been suffered.
MG fire against vehicles is now less effective (i.e. less accurate) if the firer or target is moving.

- Large guns like the 88mm AT are allowed to use the rotation order (this was a bug).

- Reinforcements are placed better around entrance locations.

- Small-caliber shells that enter a pillbox's firing slit are less likely to knock out the whole pillbox.
Vehicles with rear-facing guns (not including mortars) may not 'hunt'.

- Bailed-out crews are never eligible for exit points.
Units are a little smarter about finding the "right" cover to move to when they come under fire or panic.
British 2-inch mortar is now able to run for short distances (like Panzerschreck), but ammo load reduced from 22 to 20.

- Vehicles in hunt mode, whose guns are damaged, will stop movement and consider evasive action.
Very small changes made to vehicle unit point cost based on top armor thickness.

- When one side surrenders, any prisoners it still has on the map are automatically uncaptured.

- Slight modifications made to the firepower ratings for MP44, MP40, Thompson SMG, and Sten SMG.

- Captured units cannot set off mines. And the code that checks for captured units escaping has been extended to allow units to escape (sometimes) even when enemy guards are nearby, provided that nearby friendly forces have a significant local superiority.

- Bug fix makes passengers free to disembark and re-embark on assault boats without problems during battle setup phase and scenario editing.

- Bug fix: there is no longer a problem with quick battles when the starting player chooses "human chosen" units and the other player has "auto pick", with the first player's setup phase being skipped.

- Bocage blocks LOS less severely, provided the spotter or target is adjacent to the bocage (bug fix).

- Sometimes very small reinforcement groups (e.g. one or two units) under computer control had a tendency to sit still and not get involved in the battle. This is fixed.

- The No-Man's-Land Size setting for Operations no longer changes from 0 to 400 when saving/loading the file (bug fix).

- Area fire target lines disappear automatically when a unit is out of ammo.

- Movement paths created by the TacAI don't "hug" road edges so much.

- AI bug fixed so it does a better job 'defending' against an enemy exit edge, even if the AI is the attacking force.

- Vehicles with limited AP ammo were sometimes overly cautious about using it (e.g. SPW 250/9). This has been remedied.

- Canadians have use of 40mm Bofors AA gun.

- M3A1 scout car has 3 crewmen (driver and 2 gunners).

- M3A1 halftrack, M5 halftrack, and M3A1 scout car can still fire one MG after suffering one crew casualty.

- Two-man vehicles that suffer a crew casualty will only display only one crewman now (bug fix).

- Recoilless rifles are placed better (graphically) upon transporting vehicles (bug fix).

- When a vehicle towing a gun is knocked out, the gun is not visually 'trapped under' the vehicle (bug fix).

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