I just pulled this from the Update thread. Let me know if you need more clarification:
Prior Refusals now have specific application. Magic refusals will now be divided up into type. For instance, if you are trying to gain FirexWater magic from one drop, and enter another drop asking for Time magic, your previous FirexWater refusal will not count towards this new magic. It would however count, if you tried to gain FirexWind magic. Similarly for companions, refusals for a regular companion cannot be used towards a species-specific companion, and vice-versa.