As always the update broke bukkit and probably seveal of our plugins as well.
Which means that for the time being the server is going to be running Minecraft beta patch 1.4.0
If you want to continue to play on the server you should click “Not now” when minecraft asks you if you want to update.
alternatively you can make a secondary bin folder with version 1.4.0 in the minecraft mainfolder.
To do this you need to search for appdata on your computer and then select Roaming/.minecraft and rename your current bin to binpatch4 for example. Afteryou have done this you can run minecraft and the update and install patch 1.5.0 on your pc if you want to try it out.
When you have done this its simply a matter of manually switching between the two versions by calling the version you wish to play for “bin” and the other version for something else like binversion4 or whatever suits you.
Should you already have updated to patch 1.5.0 and have no patch 1.4.0 bin on your PC you can get the patch bin here.
The ETA for server update to patch 5.0 is anywhere from a few days to a week. Depending on how fast the bukkit and plugin developers fix the new line of bugs the recent update created.