I have followed up with the 0.02 comments about JTCS changes have been answered
HERE. Seemed a proper place to discuss JTCS v1.03.
As for CS: Middle East, yes Jim, got it right: the codebase is completely based on the JTCS 2.02, taking it from there. Unit graphics (3D, 2D) created a new, scenarios all new. It is a completely new game. What Divided Ground and CS: Middle East share is the common theme of the modern Middle East conflicts. Oh, and for the memory's sake: they share the main menu music clip
Related to CS:ME scenario design contest, and the latest comments though: at least one original Divided Ground scenario developer has picked up CS:ME game and is porting his scenarios there, as Alan Arvold is redoing the Ode to Arab-Israeli Wars scenarios using the new game.