Do NOT update your client to Minecraft 1.2 until the server is updated. If you want to play MC 1.2 vanilla on your own, but still want access to the server, you’ll have to create a backup of your minecraft.jar first. If you don’t know how to do this, either look it up or just stay on Minecraft 1.1. It’s not like 1.2 is magic fairy dust or something. (it’s not, right? cause I could use some) The server will update when the development version of Craftbukkit looks stable enough for us. That will probably take a week.