Safari 1.2 is out. Get it via the Software Update panel (8MB). It comes along with a Java 1.4.2 update (34MB). Posting this after the update, no issue so far ;-).
[Update] Dave Hyatt has posted a list of regressions from 1.1. I have one to add: I think Safari 1.2 has a cookie-related bug that prevents some sites that rely on cookies to initiate and/or maintain sessions properly. Specifically, this happens with the French IRS site, so I can't pay my income tax online with Safari 1.2. Unfortunately I can't post the case without disclosing confidential information, as you need to provide a personal indentification to initiate a session. The bug is that the session never starts, the site claims that the session has expired right after the login page. I have seen reports that Safari 1.2 may have problems with existing cookies set by earlier versions, but in this particular case, I don't think I had any pre-existing cookie for that domain.