Discreet has released an upgrade for 3ds max 4. The patch can be found here, and the read-me is here.
The patch adresses the following bugs: ActiveShade – Using ActiveShade with xrefs no longer result in improper behavior, ActiveShade now correctly represents anisotropic highlights, ActiveShade updates bump map changes correctly. Editable Poly and PolyMesh Object – Chamfer Edge on models with Mapping has been stabilized, Vertex Transforms are correctly constrained to the working axes in Local Coordinates, Detached Objects are correctly Triangulated at Render. UVWUnwrap – Patch Objects with UVWUnwrap, saved in previous versions of 3ds max, now load with properly mapped Quad Patches. Skin Modifier – Quad Menu “Add Bones” Pick from view mode fully supported. Particle Systems – Escape, to terminate calculation, is now fully supported.