From the Release Notes (http://docs.djangoproject.com/en/dev/releases/1.2/) :
Support for multiple database connections in a single Django instance.
Model validation inspired by Django’s form validation.
Vastly improved protection against Cross-Site Request Forgery (CSRF).
A new user “messages” framework with support for cookie- and session-based message for both anonymous and authenticated users.
Hooks for object-level permissions, permissions for anonymous users, and more flexible username requirements.
Customization of e-mail sending via e-mail backends.
New “smart” if template tag which supports comparison operators.