Could someone please give me a writeup of how to update ADW in 1.1.1?
What you need to do is delete the adw.apk file from system/app. This can be done easiest through root explorer (an application in the market which allows you to easily edit your system files). Make sure your system is rewritable or else you won't be able to edit (or in this case delete) files. After the file is deleted, reboot your phone and install adw from the market. Make sure you have another launcher to navigate on once adw is deleted or else it'll be pretty difficult to get to the market.
I personally use LauncherPro solely for the calendar widget so I'm not exactly sure what the new features of the application are. You should be able to check in the market for new features.