Voxatron 0.2.4 builds are now up, and will shortly be up on Humble Store (check the version number in the filename). If you don't have a lexaloffle account (Games > My Games) and would like one, see this thread.
To update from a Humble Store account, search your email for the download page link, or request a new one here
v0.2.4 is the first update that exposes many features of the second (and final!) generation of the Voxatron engine. It introduces new tools for designing simple monsters and pickups, which all run on a new physics engine. I've retro-fitted the old monsters to work roughly as they did before, but you might notice a few differences -- for example, monsters jumping on each other, or carrying fruit around on their heads.
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Everything in the game world is now collidable and can be stacked, pushed, stood on, picked up, carried and thrown. If you want to try making a monster, make sure you have the first 4 interaction boxes checked or none of this will happen! (And also make sure the width and height is not zero).
Next up in 0.2.5 will be a player editor similar to the monster editor, and then custom attacks & bullets.
Added: Monster editor
Added: Pickup editor
Added: Collisions between all monsters, pickups and players
Added: Can pick up, carry and throw some monsters
Added: Set marker for compound objects (animations, animations, pickups)
Added: Hide / show selected objects (Shift-H, h)
Changed: all frozen monsters are pushable and throwable
Changed: Armadillos stop rolling when bumping into other monsters
Changed: Barrels do not hurt, can be thrown, and explode on rapid collision
Changed: Less friction for actors not standing
Changed: Can use tilde ~ to bring up in-game console
Changed: Hellephant gives 150 points
Fixed: Spacebar teleporting bug
Fixed: White palette entry
Fixed: Click in barrel explosions sound
Fixed: Audio clipping glitches when mixed with loud music
Fixed: Monsters hurt player as warping in
Fixed: Build gun blocks sometimes sink into ground
You don't need to stand still, but you do need to be facing the thing you're picking up and reasonably close to the center (you can't pick something up by its corner). Hold fire to hoist it onto your head and then fire again to throw it. It takes a bit of getting used to.. you might want to practise in the editor by putting some crates into an empty room and trying to stack them etc.
Just found a bug.  When going to customize controls (this is new install since I recently reformatted my computer) using the windows ZIP version, if you switch to controller then put in an input, the text says "PUSH ENTER WHEN FINISHED ASSIGNING" or something to that effect.  However, it won't accept any keyboard inputs when binding game controls with the joystick, like it just stops looking while doing the binding.  All I did to work around this was put in the exact same binding 4 times to exit.  After this, the keyboard can navigate menus again.
Oh and sorry to nag, but the mouse not being returned to OS control is back in newest version.  However, instead of just being on the installer version, it's now in the ZIP version.  When I alt+TAB or alt+ESCAPE to minimize a fullscreen instance of Voxatron, my mouse is stuck in the top right corner of my screen in the OS.
I tend to multitask a bit so this is a bummer... :(
Yeah that's super-annoying, especially for alt-tabbing between the BBS. Thanks, both issues are bug-listed.
As a work-around, you could try a frameless window the same size as your screen instead of fullscreen. To set this up, open config.txt (in YourHome/AppData/Roaming/Voxatron) and set frameless to 1, windowed to 1, and maybe make sure video_mode is set to your monitor's resolution. It should act like full-screen except with better alt-tabbing.
In the future there should be a little window pop up at the start that lets you configure settings like this.