If you have any sentimental attachment to old Sovs and Races, you might want to back them up somewhere before you update. The 1.1 update deletes any .xml files it sees in the MyDocuments/Mygames/Elemental/Units and /Races folder...
It also removes stuff from the Units/Icons folder btw, so pics of your old Sovs will be gone forever!
This is done to ensure compatability, but for those of us that just HATE having to redo poses, outfits and such...
It left my mod files alone though!