A note on the title: There is currently a
Star Wars Episode 1.1: The Phantom Edit node. In that node you will find information on
The Phantom Edit. I would consider that to be
Star Wars Episode 1.2.
The Phantom Re-Edit came first, although it didn't get as much attention.
The Phantom Re-Edit popped up in April of 2000. To the best of my knowledge no-one has yet claimed responsibility. It is an unauthorized re-edited version of Star Wars Episode 1: The Phantom Menace.
One of the most notable features of the re-edit is the scrambling of the aliens' words, and the use of sub-titles to give them new dialogue. The Neimoudians have larger parts in the re-edit, and are more serious and menacing. The Gungans are more mature, and Jar Jar Binks is actually a Jedi. Anakin is also more mature.
Many scenes are cut, mostly the ones involving Jar Jar (and others) bumbling around. 119 minutes are left, out of the original 133.
I haven't actually seen either re-edit, so I'll leave it to others to rate the movie and the quality of the edits.