I called T2 just to discuss the patch with them and they agree that 1.08 wasn't quite right so they recalled it. He said the new patch should be out any day now. As soon as I got off the phone, I checked the update key and sure enough, 1.09 is downloading as I type this. Let's give this one a shot... 
(Info below added by Thunderfall)
How to download
METHOD 1: Using the game's auto-patch
Anyone who has the game can download it via the game's main menu screen (Advanced > Check for Updates).
METHOD 2: Download from the web
You can also download the patch from the servers below if you are having trouble downloading it otherwise.
Download Mirrors: 2K Games | Firaxis | FileFront | 3D Downloads | CivFanatics | FileShack
NOTE: if you have Direct2Drive version of Civ4, you would need to get the patch from D2D's patch page.
More mirrors will be posted as they become available.
---------------------------------------
Changes/additions/fixes
Changes:
- increased cost of Apollo Program...
- increased SS parts cost...
- Animal Husbandry reveals Horses
- tweaked Rifling, Chemistry, Steel, and Railroad tech costs...
- increased late-game tech costs...
- can now add two specialists in size 1 city with Mercantilism...
- final score is now modified by difficulty level...
- Speed up load times
- Global performance enhancements
Added:
- Include WB map size in the description field
- Save login name
- Added password encryption
- Added regenerate Map Button to World builder Map Mode...
- checkbox for using low resolution textures
- more logging for init failure
- minspec / video memory checking
- Added ability to change to and from fullscreen while in-game
- holding "shift" during startup will clean out the cache
- improved bink playback, added ini options
Fixes:
- ATI issue Failed to Init Renderer Fixed
- Multiplayer Lobby list jump problem and lobby crash fixed
- fixed war weariness calculation bug...
- units maintain their name when upgraded
- fixed Gold-for-Gold diplo exploit...
- fixed no research choice overflow exploit...
- Fix for voice initialization crash
- Fix addressing takeover AI and retirement OOS.
- Fixed issue with diplomacy text being always used in its first form in the translator.
- Popups, screens, and diplomacy properly cleared when exiting from main menu.
- Games protected by admin passwords (only) cannot be loaded if the version is different from the one that created the save
- Fixed bug where player could not offer any deal to other human in PBEM/Hotseat
- Sorting by date on domestic advisor now works.
- fixed bug where settlers could not move if the strategy layer was selected
- fixed Ironworks...
- fixed AI units not obeying open borders rules on declaration of war...
- fixed bug that prevent placing of units in world-builder
- fixed bug that prevented gifting of units to a human player
- stack attack infinite loop fixed
- Civic screen update fix (wasn’t showing the right maintenance and anarchy values)
- ctrl-g crash fix, optimized city bar art
- fixed right-click menu crash
- Intro movie crashing problems
Happy Civing!
(Info below added by Thunderfall)
How to download
METHOD 1: Using the game's auto-patch
Anyone who has the game can download it via the game's main menu screen (Advanced > Check for Updates).
METHOD 2: Download from the web
You can also download the patch from the servers below if you are having trouble downloading it otherwise.
Download Mirrors: 2K Games | Firaxis | FileFront | 3D Downloads | CivFanatics | FileShack
NOTE: if you have Direct2Drive version of Civ4, you would need to get the patch from D2D's patch page.
More mirrors will be posted as they become available.
---------------------------------------
Changes/additions/fixes
Changes:
- increased cost of Apollo Program...
- increased SS parts cost...
- Animal Husbandry reveals Horses
- tweaked Rifling, Chemistry, Steel, and Railroad tech costs...
- increased late-game tech costs...
- can now add two specialists in size 1 city with Mercantilism...
- final score is now modified by difficulty level...
- Speed up load times
- Global performance enhancements
Added:
- Include WB map size in the description field
- Save login name
- Added password encryption
- Added regenerate Map Button to World builder Map Mode...
- checkbox for using low resolution textures
- more logging for init failure
- minspec / video memory checking
- Added ability to change to and from fullscreen while in-game
- holding "shift" during startup will clean out the cache
- improved bink playback, added ini options
Fixes:
- ATI issue Failed to Init Renderer Fixed
- Multiplayer Lobby list jump problem and lobby crash fixed
- fixed war weariness calculation bug...
- units maintain their name when upgraded
- fixed Gold-for-Gold diplo exploit...
- fixed no research choice overflow exploit...
- Fix for voice initialization crash
- Fix addressing takeover AI and retirement OOS.
- Fixed issue with diplomacy text being always used in its first form in the translator.
- Popups, screens, and diplomacy properly cleared when exiting from main menu.
- Games protected by admin passwords (only) cannot be loaded if the version is different from the one that created the save
- Fixed bug where player could not offer any deal to other human in PBEM/Hotseat
- Sorting by date on domestic advisor now works.
- fixed bug where settlers could not move if the strategy layer was selected
- fixed Ironworks...
- fixed AI units not obeying open borders rules on declaration of war...
- fixed bug that prevent placing of units in world-builder
- fixed bug that prevented gifting of units to a human player
- stack attack infinite loop fixed
- Civic screen update fix (wasn’t showing the right maintenance and anarchy values)
- ctrl-g crash fix, optimized city bar art
- fixed right-click menu crash
- Intro movie crashing problems
Happy Civing!
