There previously was a really complicated formula that would randomly declare war/peace between the factions and while I had tried to modify this in the past, there were still times when Empire and Rebel could make peace... I have basically removed that entire piece of code and replaced it with a much simpler script which make sure Empire & Rebel are always at war and gives the Hutt faction a low chance to randomly declare war/peace (they can only be in one war at once). So I think this should fix the issue with Empire and Rebel being at peace in the 0.8.1 patch.
Otherwise the patch is almost ready to be released, but I'm going to delay it for a few more days since we're trying to add in a few new things. I'm trying to add blank MP3 files (ie. arena_#.mp3, fight_#.mp3, etc) so you can choose to replace those with real music if you want. Several team members have created some new models or scenes so we'll try to add those as they are ready. Here's an example of a new throne room that TakiJap created (see pics below, we still need to add more lights, etc). Also, Happy Stormtrooper had a good suggestion for the Kingdom Management we integrated into the next release which was to add all the aliens and other mercs as a culture. So I'm trying to code it so when you switch your culture then all your town/castle guards change and also the troops that will be in your recruited lords armies will also change. So if you want to create a wookiee, trandoshan, mandalorian, clone, or other faction then you will hopefully be able to do it. But after I get this working I think we'll be ready for a release.