does this mod do anything for handling noise??

No.... it only improves the electronics. Handling noise is unchanged. That said, I know this mic has some handling noise issues, but they are not unmanageable IMHO. Clean boom technique is all it needs. Now ... if you want to use a "painter's pole" boom coupled with cheap pole microphone mounting option, THAT may be an issue with this mic.

My modded MC-012 microphone arrived yesterday, it was delayed in customs, and I had a quick go with it last night. I must say that even with only a foam windshield on and waving it around on the shock mount I couldn't detect any handling noise at all. Maybe the newer versions don't suffer from it as much. I'm going to do some audio tests on it at the weekend and I'll post the recordings in case anyone wants to have a listen.

Are you guys modding also NEW Oktavas?

I thought new models were redesigned with the modification "built in"?

Is this Okatava modding fad just a carryover from the past?

Oktava has not incorporated the newer better components into their product last I knew and so yes, even brand new Oktavas (at least as of about a year ago anyway) can benefit from the mod.

This site covers the different Oktava mics, different mods for both old and new mics, and more:
OktavaMod - Affordable Boutique Microphones

To Petri:

Argh!

To Chris:

Phew!

That's good, I just had mine modded. Sounds pretty good too.

The mod work is all internal to microphone body, right? It touches neither the capsules nor the XLR connector?

My Oktava has a finicky XLR connector. Sometimes it's perfect the first time, other times it requires some wiggling to seat the XLR cable properly. It doesn't ever click into place; the Oktava just doesn't have that feature. While it's keyed, it's more of a notch in the connector housing.

Anyone else have this problem, or a resolution?

I find the Switchcraft connectors go in/on and latch easier on my 012s than Neutrik's... which I generally prefer.

I'm not sure that this is correct. There was a pretty extensive discussion about this on another forum.
Low Cost Small Condenser Options - Page 2 - DVXuser.com -- The online community for filmmaking

I have the same problem and the same solution. I use cables with Switchcraft connectors instead of Neutrik.

Rick, Jonathan, thanks! I'll grab a different cable and see if it works.