So what has changed since the last update?
First of all I improved the physics behaviour by increasing the iteration count in Unity. Everything is much more stable now. With the new settings the game needs a bit more performance but that shouldn't be too dramatically.
Besides that you have now more possibilities to place blocks as I added new possible rotations to the placing-system. As mentioned in the video you can now build things like spirals which couldn't be built before.
Something I was programming on much longer than I planned was the options menu. I started to draw a concept on the paper which included dropdown-boxes to select things. So when I started to implement them I realized that there was no such thing implemented in Unity. That meant that I had to code them by myself which was really complicated considering what I simple things dropbown-boxes actually are (that things appeared in front of other things, dropdown-boxes ignore the scrollbar,...). I hope such things will be easier to implement with the new 2D-tools in Unity 4.3 ;)
Besides the things mentioned above, implemented the ability to upgrade blocks (wood->stone->metal->...) which I isn't shown in the video.
Like I mentioned before this is a smaller update compared to the last ones, the next updates will be more exciting as I will implement new blocks and also begin the work on the first map that will be in the final version of the game (the current map is more or less only a place-holder).