too many changes to mention all but a few
They knocked 20-30% AF off all armour
One of my shields went from AF 279 to AF 79

Crafted gear was reduced in base efficiency by 20-30% too, but had stats added to compensate & can be worn at lower levels - This does have the negative effect of making crafted items even more useless than they already were to the crafter him/herself tho.
Mob drop-rates have been "adjusted" downwards to compensate.
High-res graphics have been implemented.
The memory problems & graphics-lag have been pretty much eliminated.
Horse-routes have been made 3-10 times as expensive as before.
Facit - They made the game prettier but more challenging. They took money out of the system by reducing drops & their NPC trade value & increasing prices.