Before this fix was implemented, if there were insufficient numbers of PlayerStarts in open play for the team, some players would spawn in jail. Obviously, that shouldnt happen.
However, most mappers arent going to place 16 PlayerStarts per team in open play, as well as the jail PlayerStarts. So what has been implemented (and was implemented for UTJB too) is the ability to spawn on random pathnodes near to the switch that you defend.
For example, if you had a map designed for 4on4 (and had 4 playerstarts in open play for each team), but you put 15bots and yourself in there, beforehand 4 players from each team would start the match in jail, since at the start of the game there werent any PlayerStarts in open play for them, so UT2004 resorts to using the PlayerStarts in jail.
However, now what will happen is that the extra 4 players will spawn on pathnodes near to the switch in their base, rather than in jail.
The general solution to preventing players from spawning on PathNodes if it really is bad is to put more PlayerStarts in. I always put a minimum of 8 in open play, but on larger maps you will want to put more.