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This release fixes several bugs and also contains a security fix.
This release contains a security update to properly munge filenames to protect against exploits on some server configurations. The Media module is still in beta (and therefore not recommended for use on production sites), but if you are using it on a production site you should update to this version to take advantage of the security fixes.
Changes of note:
Issue #1106922: Cleaned up files and directories, moved includes and asset folders
Issue #866572: Show confirmation dialog when switching between view modes in admin media browser that selections will be lost
Issue #1031910 by effulgentsia: Do not allow temporary files to be selected
Issue #1070974 by DamienMcKenna: Additional helptext for input filters if wysiwyg module is enabled
Issue #1070708 by ngmaloney: Validate that content inside media [[ tags is actually json.
Issue #1015580 by Jacob Singh, Damien Tourand: Initialize media types on install and pprovide a batch op
#1049446: Sets the default behavior for media dialogs to the admin_theme
#1049446: Provide a settings for for general media browser settings and rename dialog_theme variable
#1046290 by duckofdeath: add t() to confirm check in import validate.
#1038936 by mfb: Allow rb mode for stream wrapper
#1038266 Added the button class to the media links so that theme styling is used
#1034838 by catch, David_Rothstein: use #attached attributes for adding JS and CSS where possible instead of drupal_add_*
#1056718 by MaxWesten: Fixed empty thumbnail page warning
#999594 by bec: Added required flag for media element
#1016946 by jonaswouters | Ao: Fixed Strict warning: Declaration of MediaInternetFileHandler::postSave().