version 1.34, and reading the file it is from 2004. The latest
    downloadable texi2dvi is from May 2011, and it is version 1.164,
    i.e. 'earlier' than the 2004 script. I am confused, can someone
    explain?

Very simple.  Those versions are not floating-point numbers.
Ignore the 1. and treat the remainder as an integer, that is,
34 < 164.  The version on ftp.gnu.org is newer, really :).

k

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