The availability date of patch 1.2 has been revealed on the Might and Magic official site: December 20th, so in less than a week. Here is a summary of the change log:

Major bug fixes (Week of the Plague, Dynasty weapons, unit abilities, scripts, localization)
• Skirmish AI tweaks:
- Tries to defend all owned town (previously the AI focused on its starting town)
- Previously if a hero stronger then the AI's hero threatened a town, the AI hero let that town undefended. Now the AI calculates all of its nearby hero's army and creature growth and defends the town if it finds it possible
- Always defends the last owned town if it can causes reasonable losses to the attacker hero
- Huge speed improvement, AI thinking is approximately 2-3 times faster than in the previous version
- Further improvement of cooperation among primary and secondary heroes
- Improved exploration and target priority
- Pre-calculated army contraction. The AI calculates how many creatures can the target collect (including possible creature growth) before the AI's hero can reach it and calculates if it is worth to chase it.
- Further improvement of Town portal usage
- In case of an FFA the AI tries to attack and capture towns from a weaker player
• Combat AI tweaks:
- General target choice improvement for the units
- Improved ability usage
- Improved racial ability usage
- Improved ability selection and different builds for Magic/Might, Tears/Blood heroes
- Improved creature ability usage
• Gameplay improvements:
- The unit setup after using the Tactics ability is remembered from battle to battle
• Intel support:
- Fog calculation
- Variance shadow mapping vs. hardware shadow mapping

View the full list in the forum.