The launcher uses https://github.com/Litarvan/OpenAuth to authenticate with Mojang which I looked through the code and its good quality. If you are having doubts over it you can always use a tool like Fiddler2 or Wireshark to ensure that it is only making encrypted connections to Mojang. It connects to the software update servers unencrypted, so you will be able to see what it sends to my servers. If everything is working correctly it should request a version.txt file from my servers and then the .jar files (if you are playing for the first time or updating).
The manual way of installing the mod broke when Mojang started adding a checksum verification to the .json files of the beta versions which causes the launcher to revert any changes made to the .jar when you try to play. This means that after you install the mod the launcher will redownload b1.7.3.jar and undo the changes and you will wonder why nothing changed. Most users of course do not realize this and send me messages such as "I downloaded the mod and nothing changed!?" or "Whats the point of the mod if nothings changed?" or "The crafting recipes don't work" etc
For some reason Mojang only added this check to alpha/beta versions and not to normal Minecraft which is why manual installation of mods still works on regular minecraft.
From the next update I will add a zip with the mod's files (for manual install) but figure it out on your own and don't ask me anything about it.
Also I have fixed some "can not connect to update server" messages you might have gotten while starting the game, please redownload the launcher to fix them.
Hey, how can i make server for beta 1.7.4? cant find any guides.
There was never a server version, I was looking for someone to help me make one but there was no interest. The closest thing to multiplayer would be to make a beta 1.7.3 server. You can play with 1.7.4 but won't be able to use the updated blocks.
Also the Beta 1.7.4 Launcher will stop functioning in a little over a month. Due to the lack of interest in the game and my loss of interest in minecraft in general (thanks to the new updates and childish community) I have decided to shut down the service. You will still be able to play if you have already installed the mod. I thank all of you that played the mod these three years. If interest in the game ever starts again I'd like to continue it but for now I don't have the time.
EDIT: And yes, because you will ask, I do not have the manual install files for the game and my computer isn't setup for compiling the source code right now (I don't even have java or an ide installed).