I picked up a bunch of L5R stuff at the Foundation's Edge sale yesterday, including the 3rd edition book. Rokugan's changed a lot since the first edition... but also hasn't changed much either. Just more history to incorporate to the game.
The system doesn't seem to've changed much (now that it's no longer owned by WotC). However, I haven't had the chance to try making a character. I'm hoping to be able to do that soon.