this is what the guys on SRK had to say about this.
http://shoryuken.com/forum/threads/playing-on-an-unpatched-version.138204/

so now the jhb tournament is bascially 3 major patches behind...balls ;(

Patch:

1. KL spin will ahve 6 more recovery frames on block
2. KL hat loop removed
3. kabal block infinite removed
4. sonya block infinite removed
5. various bugs fixed
6. wake up moves punishing certain characters after a ground breaker removed
7. stryker xray punsihed on hit fixed
8. advantage on cyrax command throw lessoned
9. cyrax command throw break changed from 2 frame windown to 10 frame window
11. sindel able to scream after 21 now and able t juggle with b3~scream
12. smoke bomb otg removed
13. cyber sub bomb has a smaller buffer window
14. jax ex dash punch goes farther and has armor.
15. jax has a gp fake
16. quan chi sky drop adv lessoned
17. quan chi reset after trance removed
18. quan chi skeletal boost after trance trade removed
19. quan chi can now move after trance
20. raiden no longer has adv after b312 and 334 are blocked. he is now at -1

Tweaks coming a few hours after the patch:

1. sonya cannot link military stance after d4
2. sonya dive kick inf removed
3. kabal cannot link dash after d4
4. KL infinite removed
5. kano up ball is now more disadv on block
6. more various bugs fixed

Also, Improved netplay*

http://www.frame-advantage.com/new-feature-search!/6

hmm sorry i think i must of miss read that sap..you right and i agree with them.

dont care if they fix it, just give us a normal lobby ?

KOTH is cool. but just to play it for respect points is not good enough in my book. either way, your win/loss ratio is saved, the rooms are much better

Those same ppl also complained about DOA, VF, and SF4

Im not saying its perfect, we just had really good matches last night.

The international consensus is that KOTH is *** (PSN and XBL). Let's hope that NRS sorts that out as it's actually quite a nice feature :)

it doesnt matter, all i want is the book ends :P

anyways guys we have discovered something while playing last night.

King of the hill is garbage, it basically lags you more even if its only 1 v 1 and we had 5 ppl with a party chat going on at the same time. I was on breaking point with the game last night and was about to give up then we found out the power of creating rooms !

OMG , there was such a performance boost with no lag spikes and noticable lag on a lot of matches, you cant specatate anyone but we were all willing to drop that for awesome online matches with a group chat going at the same time.

So you PS fanboys better try it out later and let us know ?

Watch out for Picking up the US version... dlc may not be compatable. Learnt that the hard way with Burnout.