This release mainly adds new features such as the new Dynamic Streaming, DVR functionality, HTTP delivery support, and H.264 enhancements. There are no changes in licensing or pricing. The editions also remains unchanged with the Flash Media Streaming Server (FMSS) taking care of your live and on-demand streaming needs while the Flash Media Interactive Server (FMIS) provides more complex features such as recording capabilities and Origin-Edge setups, as well as full support for server side scripting.
Of course you can also try the free Flash Media Development Server 3.5 and use all the features of FMIS up to a limit of 10 connections.
Flash Media Live Encoder, Adobe's free live encoding tool for broadcasting live streams has also seen an update today, bringing it up to version 3.0. The major new feature here is the ability to encode multiple streams in multiple bitrates at once, publish them to FMS 3.5 and then make use of the Dynamic Streaming feature in a live setting. Pretty cool stuff.