I tried setting up permalinks with /archives/%day%/%monthnum%/%year%/%postname%/, since I'm from New Zealand and that whole month first thing is foreign to me ...
However, while *most* permalinks worked fine (individual posts etc), the archives permalinks wound up being very bizarre - on hover, there were a couple of funky characters and on click it came up with a 'browser can't understand this request' error.
Changing back to the regular /archives/%year%/%monthnum%/%day%/%postname%/et al fixed it.
Any ideas? Oh yeah - 1.2 delta.