I've just tried rev 1282 and it worked perfectly for me; I couldn't test seeing another player since I don't have another minecraft-capable pc, but I could place and break blocks without any problems.
Did you set the server up, permission-wise? Any plugin that you might have that's preventing you to interact with the world? I have a feeling that guests (that is, by default, everybody) don't have the permission to build.
If so, you might want to check out the configuration wiki, for the groups.ini and users.ini files:
http://www.mc-server.org/wiki/doku.php?i...groups.ini
http://www.mc-server.org/wiki/doku.php?i...:users.ini
And I think even vanilla 1.2.5 had an issue that sometimes you couldn't see other players.
Did you set the server up, permission-wise? Any plugin that you might have that's preventing you to interact with the world? I have a feeling that guests (that is, by default, everybody) don't have the permission to build.
If so, you might want to check out the configuration wiki, for the groups.ini and users.ini files:
http://www.mc-server.org/wiki/doku.php?i...groups.ini
http://www.mc-server.org/wiki/doku.php?i...:users.ini
And I think even vanilla 1.2.5 had an issue that sometimes you couldn't see other players.