Introduced sensor fusion on devices with a gyroscope. This is a really big change. The result is a completely not wobbling compass arrow, when the device is not moved.
Changed the low-pass filter algorithm for Android 2.2 with a better one that is more responsive and is compatible with the new sensor delay option.
The compass now chooses the best sensors for your device for calculating the compass degree.
Sensor Fusion: For devices with Android 2.3 or higher and a gyroscope
Accelerometer/gravity and compass: For devices without a gyroscope or with Android 2.2
Added new settings option for the sensor delay. You can now decide at which rate the compass gets new values from the sensors. The lower this rate the less battery is consumed. If the compass does not work on your device, try setting a lower sensor delay.