From Minecraft Wiki
November 30, 2010
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Server version 0.2.6_01 was released later on November 30, 2010 to fix a bug where players no longer received snowballs when entering a server.
- Added proper hurt animations and sounds to mobs and players.
- The multiplayer join server screen now remembers the latest entered IP.
- Creepers now animate before exploding
- Explosions animate properly.
- Increased chunk saving frequency on the server.
- You can now see sneaking players. Names of sneaking players aren’t visible through walls, and are visible a much shorter distance.
- Buttons, levers, and pressure plates animate properly when activated
- 8 bugs fixed
- Leaving sneak mode no longer rapidly plays all the step sounds that it silenced during the sneak.
- Swords and other weapons now deal damage properly.
- Fixed dead players logging in as invisible ghosts
- Made arrows visible and deal damage.
- No more infinite free arrows.
- Hoes now produce proper seeds.
- Server logging now appends to server.log rather than overwriting it.
- Fixed minecarts and pigs moving twice as fast as they should when ridden.
- "Bug update #3." – The Word of Notch, November 30, 2010.