Does FS2004 have minimum seperation?

Meaning, when you get close to an aircraft does ATC guide you away from them? I hope so because this is very important in real life and Flight Unlimited II had this feature and that is much older than FS2004. I've also heard that AI aircraft are much more intelligent than in FS2002 and can takeoff and land much more better. Is this true?

I don't think that ATC guides you AWAY from aircrafts. It only tells you WHERE the traffic is (direction and distance), and then you're on your own pal (even while IFR). I believe that when you get vectors for ILS approaches at the last phase of the flight (IFR), the ATC will guide you away from other traffic, and to the runway. But when switching to VFR (or while VFR), it's your responsibility. I don't think that TOWER controllers ever advised on close traffic. I've had once a situation, when a plane hit me from the back while I was in final approach.

To sum up, while final approach (VFR), neither TOWER controller nor aircrafts approaching the runway care about your existence!