I just upgraded to the newest version of this game (1.2) from the app store and now I have NO neighbors or pending invites whereas before I had over 300 neighbors and at least 100 pending invites (I had stopped accepting invites as it was too big a pain without a "Accept All" option).
I also found NO differances in the newest version (ie. new crops, animals or decorations) then the previous version so I recommend everyone hold off a few days so they can work out bugs before making the upgrade. As for me, I'm emailing support.