This version was missing 2 files in the site theme, please get 2.1.1 instead.
The new release is available at GoogleCode. It contains a number of bugfixes, and some new features:
The input format for your site is now modular. This version includes support for Markdown
The theme support is much cleaner. It even comes with two themes! To learn more, there is a theming guide
All links in pages generated by Nikola are relative, which means you can deploy to anywhere in your server and all links will work.
Translation support has been greatly improved, and translations are now welcome!
There is now better support to add your own files into the output folder (just put them in "files" and they will be copied as needed).