I forgot to pull that back out of the changelog, didn't I?
The auto-centering feature is implemented, but redrawing the whole screen right now is a slow process, if you have anything more than a small number of tiles displayed at a time. This isn't a big concern most of the time, because it only happens when your character gets close to the edge of the screen. But with auto-center, it happens constantly.
Long story short, I became less satisfied with how it performed the more I tested it, and I removed it from the options screen. I reopened it in the issue tracker, but forgot to remove it from the changelist. The gameplan is to try and speed up the redraw handling sufficently to make autocenter look good, and then reinsert it on the options screen, another version or two out.
If you want to try it as-is anyways, you can enable it by editing your myOptions.xml file; just open it in notepad or something similar, and change AutoCenter="False" to AutoCenter="True".
(And yeah, theoretically, 1.0 savefiles should work OK in 1.1. Not 100% sure.)