Just as an aside, I went to experiment with this new capability this am, only to find that the layer arbitrary rotation was broken. I tried the exact same thing I was doing on another installation, just to make sure I wasn't leaving out a step or doing something not permitted, but no. I was loading an image, selecting layer/transform/arbitrary rotation - the dialog appears, the dashed lines appear to indicate the level of rotation - clicking 'rotate' however makes the rotated selection vanish, and has no ultimate effect; the image is not rotated.
Odd - I just did the same thing - layer>tranform>arbitrary rotation. Clicking 'Rotate' applies the rotation both when I use the slider and use the "handles" to set the angle.... In short, it works on my installation. I sometimes find it helpful to run GIMP from the command line when I'm fiddling with it - often it will spew out very helpful info when something goes wrong... Chris