Not sure of the detailed route cause on this one yet, but Angular 1.1.2 seems to have a regression around the $routeChangeSuccess event when used on IE8 w/ JQuery . While the update() method is running, it bombs out while calling

element.contents().data('$ngControllerController', controller);

JSFiddle showing the issue:
http://jsfiddle.net/HsQRN/6/
Note that the new route doesn't load correctly, and that there is a console error. Works fine with 1.0.4, or without JQuery.

Edit: Updated the JSFiddle