The Unreal Technology page has been updated with a list of known issues with the demo. Thanks Frans at 3D Action Gamers. Here's the deal:

Known Issues With The Demo

Direct3D

• You need DirectX7 to use Direct3D. Get it on Microsoft's Download Page.
• Some users of Windows 98 + Sound Blaster live cards + NVidia video cards are finding the demo locks up on exit, sometimes with the music looping. Restarting the computer or killing the TournamentDemo.exe application gets you free.
• In 16-bit color, weapons may interpenetrate walls when you get real close.
• If you have any problems, make sure you have the latest Direct3D drivers for your card.

Networking

• Occasionally when the server switches levels, users with high-ping connections may see the "Connecting..." screen appear twice, and reconnect to the server twice.
• When picking up a weapon, sometimes the animations flicker.
• In 3dfx Glide, if you alt-tab away from Unreal while connected to a server, you will time out and be disconnected. If running a listen server, all other clients will time out.
• We have many reports that internet gameplay performance sucks with all games for users with WebTV installed (particularly the version bundled with the Voodoo3 3500). Uninstall it.

Audio

• A3D support is back. For A3D support to work properly, you need the latest drivers from Aureal.
• EAX support is back.

Cosmetic

• Ping doesn't always align right in the scoreboard.
• Ping doesn't show up in scoreboard if resolution X size is less than 640.