Well, its two main points are the fantasy setting that is not based on Tolkien, and the freeform magic system. Grey Lotus doesn't have "elves" or "dwarves" or "halfings" like most fantasy systems, instead blending Celtic lore with other myths, and mixing in some original creations. The magic system is completely open ended, but limited in enough ways that magician characters are on fairly even footing with non-spellcasters. Other appealing characteristics are an epic, detailed fighting system, open-ended advancement, and the fact that its free!
The initial edition of Grey Lotus was released in two very minor variations-version 0.99 in June 2002 and Version 1.0 in July 2002, the differences being almost entirely in formatting and minor editing. The HTML version has occasional formatting issues as it was automatically generated.