Some feedback for you:

@JC LEON : We will be including some core decals in the next build, which you can use as templates for our own custom decals.

@smallg : I am working on a quick fix for the mouse-out-of-position issue. Can you give me a step by step so I can reproduce the (a) physics messing up, (b) which character disappears, (c) frame rate dropping to zero. No possibility of reverting to build 027, all we can do is resolve your issues as quickly as possible. The more detailed feedback on each item the better I can help.

@HarryWever : Send me one of your 'animated critters' with media and FPE and an FPM with a description of what I need to do to see the sinking issue, thanks.

@Jerry Tremble : Did you resolve your missing buildings issue. If you have a building that still disappears when you click test game, send me the one entity and an FPM level and I will reproduce that this end.

@Eteponge : Zombies work fine here. Maybe create an FPM with the worst zombie and send me the level plus a video of what you see, and I will attempt to reproduce, thanks (maybe even a standalone exe too).

@Lance : Alas when I fixed the FPE SCALING vs main scaling, the old entities that had FPE scaling had to be re-done manually. No way around this that would not cause issues elsewhere. Just delete the level entity and drag a new instance in.

@Bored of the Rings : I can reproduce here so looking at a quick patch to solve this one.

@HarryWever : Zombie performance drop. Can you make a video showing the 'before' and 'after' FPS as the speed remains fine even with 10 zombies on my aging HD 7700.

@JackalHead : "very choppy when editing terrain" does this happen also when scrolling the map in top down mode? What happens if you hold an entity then press PGUP and then scroll the map around, any faster for you?

My email is lee@thegamecreators.com if you want to send me shots, videos, step by step, standalones, e.t.c. which can help me identify these issues quickly and sort out a quick patch build.

I'm not sure if this helps Lee, but here's 4 screenshots showing how the offset of the cursor is. You can see that it's not as noticeable as much when zoomed in and it seems perfectly aligned in the top left corner and zoomed out.

By the way, I'm on Windows 7 with a 1440x900 monitor set at 96 DPI.

Page Up doesnt help. still very choppy. I am however not choppy in f9 edit mode.

Yes I know we can't go back to 1.00027. Contacted support, although nothing can be done now until they fix it in the next build.
[update] - ok just saw Lee's post above.

Thanks but the character physics issue is hopefully all fixed now, it was a model problem which only became apparent with the new build... was just trying to go back a build so i could continue working on it
not too worried about the mouse issue as reselecting stuff (picking it up off the map) is still perfectly aligned and that's the most important bit but if you need anymore info on that let me know.