This is the newest version which will only work on views 3.
Changes Since Version 2
Singleframe and Thumbnailhover have been combined into the Views Slideshow Cycle module. Singleframe and ThumbnailHover are still available, but are marked as legacy modules. They will be removed in the next major release. There is no migration path from singleframe/thumbnailhover to cycle.
Support for plugin-able pagers. So other modules may add their own pager types. You can see an example on how to do this here http://drupal.org/node/903250
Support for skins. You may now create a module that allows you to add your own skins so one can easily change the layout of the slideshow through the settings. You can see an example on how to do this here http://drupal.org/node/909020
More templates. If you look in the views_slideshow/contrib/views_slideshow_cycle/theme directory you can see there are numerous tpl.php files you can use to override the default style of the slideshow.
Redesigned settings page. The settings page has been redesigned to offer the most used features by default so one can quickly get going. You can find additional options under the advanced settings checkboxes.
Make sure your cache gets cleared after this update. If you run into any issues resaving your slideshow settings may correct it.
There are changes to the css classes in a few places. If you have styled your slideshow make sure to check your css to see if it still works. Specifically the activeSlide class is no longer on the a tag of the thumbnail. It is now on the div tag. So if your css has a.activeSlide change it to .activeSlide a
Creating a new release to clear up dev for new planned functionality.
* Add Update 6000 function to rebuild theme (aaron).
* Separate theme functions into new tpl.php files (aaron).
* Create API to allow modules to plug into Views Slideshow (aaron).
* Load Cycle when using Single Frame mode (aaron).
* Add jQuery Cycle plugin js file (aaron).
* 324640/KarenS PHP Notices (robertDouglass/Karens).