Changes in the v1.08 Patch (See Version 1.07 below for more changes.) 

Skill Balance Changes 
Barbarian

Whirlwind now alternates between two weapons when using two-weapon style. 
Paladin 

Increased Holy Shock's melee damage bonus. 
Decreased the power of Conviction. 
Added a casting delay for Fist of Heavens and increased its damage. 
Increased the blocking bonus that Holy Shield gives. 
Conviction does not affect immunities. 
Necromancer 

Increased Fire Golem's melee damage. 
The hitpoints for a Revived monster no longer increase with more players in a game. 
Amplify Damage and Lower Resist do not affect immunities. 
Sorceress 

Increased Fire Wall's damage. 
Increased Blizzard's duration. 
Decreased Meteor's casting delay. 
Decreased casting time for Chain Lightning and Lightning. 
Increased Frozen Orb's damage. 
Thunderstorm now hits a target every time. 
In expansion games, Static Field is no longer affected by Conviction and Lower Resist. It will not take a monster below 33% health in Nightmare difficulty or 50% in Hell difficulty. 
In non-expansion games Static Field remains the same. 
Cold Mastery will not affect cold immune monsters. 
The damage inflicted by Ice Blast, Fire Ball, Lightning, Nova, and Glacial Spike, per level has been increased. 
Amazon 

Increased Freezing Arrow damage. 
Increased Ice Arrow damage. 
Increased Immolation Arrow damage, added a casting delay and decreased the fire duration. 
Added a casting delay to Plague Javelin and increased its damage. 
Assassin 
Dragon Tail now has an attack bonus. 
Increased Fist of Fire damage. 
Increased Claws of Thunder damage. 
Increased Pheonix Strike damage. 
Fixed various bugs with skills that use two claws. 
Dragon Tail does not cost mana or knockback when it misses. 
Druid 
Turned down the mastery bonuses for the wolves and bears. 
Increased Feral Rage's life stealing. 
Increased Hunger's life stealing, but increased its damage penalty. 
Increased the delay between the times that Hurricane does damage. 
Increased the radius for Armageddon's damage and increased the delay between missiles. 
Decreased Werebear's bonus to hitpoints. 
Decreased Maul's damage, stun length and attack bonus. 
Increased the damage bonus of Fire Claws. 
Decreased the damage bonus of Fury. 
Modifications 

Creatures can be summoned in town, as long as the summoning does not require a corpse. 
Crafted items cannot generate with affixes meant for magic items only. 
The durabilities for all claw class weapons are now doubled. (This will not affect existing items.) 
Adjusted attribute requirements for all claw class weapons. 
Adjusted damages for all Elite weapons. 
Adjusted affix level for wands, staves and orbs. (Higher levels of these items have better magic attributes.) 
Increased the chance of enhanced damage affixes on weapons. 
Increased the chance of enhanced attack rating affixes on weapons. 
Increased the chance of enhanced armor affixes on armor. 
Increased the chance of elemental damage suffixes on weapons. 
Increased the level and the damage for certain high level elemental damage affixes. 
Decreased values on +maximum damage and +minimum damage charms. (This will not affect existing items.) 
Increased values for percentage chance to find gold affixes on charms and jewels. (This will not affect existing items.) 
Increased attributes of many affixes for jewels. (This will not affect existing items). 
Increased chances of extra quantity affixes on throwing items. 
Increased chances of regenerate quantity affixes on throwing items. 
Increased jewel drop rates. 
The necromancer spell "Iron Maiden" no longer appears on charged items. 
Increased resistance bonus for tal, ral, ort, thul runes when socketed into shields by 5%. 
Increased resistance bonus for um rune when socketed into shields by 2% and when socketed into helms and armor by 5%. 
Changed bonus for runes with + to max resists to 5%. 
Repaired rune words. (Most previous rune worded items will no longer get rune word bonuses.) 
Adjusted rune drop rates. 
Removed several melee modifiers from generating on orbs. 
Changed Izual to be able to drop treasure. 
Changed Charsi's imbue quest to always give a plus to individual skills on items that can have them. 
Items sold to stores are priced as if they were fully repaired. 
Lowered prices for items with +2 or +3 to single skills. 
Lowered costs for recharging items. 
Removed throwing potions from stores. 
Increased prices for circlets and coronets. 
Unique monsters with the "teleport" attribute now heal a fixed amount. 
Crushing blow is at 1/2 effectiveness on bows. 
Crushing blow is affected by physical resistance. 
Lowered hireling resurrection cost. 
Increased chances of finding unique and set items. 
Slightly increased the item drop rate for extra players in a game that are not in your party. 
Lowered gambling prices that scale with your level. 
Changed prices on rejuvenation and full rejuvenation potions. 
Added potential sockets for Troll nest and Blade barrier shields. 
Enabled sockets on certain items, increase sockets potential on others. 
Increased blocking for grim shield. 
Increased AC for all elite shields. 
Increased AC for Bone visage helm. 
Changed increased rate items, (fast, faster, fastest) to display as a percentage faster. 
Adjusted armor, blocking, durability for elite Paladin shields. 
When used in melee throwing weapon durability decreases at one third the thrown rate. 
+2 to all skills affixes can now spawn on rare amulets. 
Increased range of the Glorious axe. 
Changed items with pierce to use their pierce value as a percentage instead of as a level in the skill. 
Changed the piercing value for certain uniques with pierce (Kuko Shakaku, Buriza-Do Kuyanon, Demon Machine, Razor Tail). 
Changed Wizardspike unique bone knife to 75% resist all. 
The set item Naj's Puzzler now has 69 charges of teleport. 
Added sound to shift-click of potions in grid. 
Added elemental damage affixes for charms. 
Adjusted the difficulty of Baal on higher difficulties. 
Cannot get quest completion credit for the ancients' quest unless the character level is 20 or greater in normal difficulty mode, 40 or greater in nightmare, and 60 or greater in hell difficulty mode. 
Keys now stack to 12 instead of 6. 
Right mouse click works the same as left mouse click if assigned an attack skill. 
Act II hirelings have been improved with additional skills including auras. 
Diablo II now supports EAX
The 1.08 patch for Diablo II adds support for Creative Labs' SoundBlaster Live! cards on the Macintosh. Players that have this card installed can now access a new "Environmental Effects" option that is found under Sound Options in the Options menu. This option adds effects to sounds to create a more immersive game play experience. For example, characters in a cave hear sounds reverberating off of the cave walls. 
Major bugs 

Addressed certain duping issues when entering and leaving games. 
Fixed a bug which could allow you to have a defense rating after using Berserk. 
Minor bugs 

Added missing "crimson" affix with adds +5-10 fire resistance. 
Fixed a bug were expert's/veteran's/master's prefixes were swapped with sounding/resonant/echoing prefixes. 
Fixed a bug which allowed spells cast while wearing items of piercing to have piercing. 
Fixed a bug where single skill bonuses did not stack properly. 
Fixed a bug where variable costs for armor types was not being calculated properly. 
Fixed a bug where you were allowed to multi-buy rejuv potions in stores. 
Fixed the bug that added javelin damage to Lightning Fury, and made the graphics simpler for the lightning. 
Changes in the v1.07 Patch (Includes previous fixes) 

Skill Balance Changes 
Paladin 
In expansion games, Blessed Hammer/Concentration combination imbalance has been corrected. 
In non-expansion games, the Blessed Hammer/Concentration combination remains the same. 
Zeal is now limited to 5 swings and gives an increased percentage to Attack Rating. 
Fixed display for Vengeance's damage to reflect its actual damage. 
Increased damage for Fist of the Heavens. 
Decreased the length of time that Converted monsters fight for you. 
Increased the Smite damage for Holy Shield. 
Increased resistance bonus for Resist Fire, Resist Cold, Resist Lightning, and Salvation. 
Increased the Mana regeneration rate for Meditation. 
Added melee lightning damage to Holy Shock. 
Added melee damage to undead to Sanctuary. 
Allowed Conviction to reduce an enemy's resistance to a negative value. 
Increased the player's resistance penalty for Conviction. 
Added a damage bonus to Fanaticism. 
Barbarian 

In expansion games, Whirlwind is now properly modified by weapon speed. 
In non-expansion games, Whirlwind remains the same. 
Frenzy, Double-Swing, and Double-Throw are now properly modified by weapon speed. 
Added damage bonuses to Concentrate and Frenzy. 
Frenzy now increases in attack speed as more monsters are hit. 
Increased the damage bonus on Berserk. 
Changed Battle Orders bonus to increase by 3% per level at all levels. 
Increased the damage of War Cry. 
Amazon 

Strafe has a greater range. 
Impale and Jab are now properly modified by weapon speed. 
Impale increases damage with level and decreases the chance to lose durability. 
Fend is now uninterruptible and does more damage. 
Sorceress 

Increased the damage of Hydra. 
Lightning Mastery now affects electrical damage rather than decreasing the Mana cost of those skills. 
Added a casting delay to Fire Wall, Meteor, Blizzard, Frozen Orb, and Hydra and commensurately increased their damage to prevent a drop in framerate, while maintaining the same overall balance. 
Decreased the Mana cost for Enchant and increased its bonus to fire damage. 
Most skills received a damage increase when the skill level is above 8. 
Necromancer 

Enhanced the damage and decreased duration for Poison Dagger, Poison Explosion and Poison Nova. 
Increased duration and adjusted radius for Decrepify. 
Fixed Iron Maiden+Blood Golem bug and increased the Blood Golem's Life stealing. 
Major Bugs 

Fixed a bug with Paladin skills and party/hostility on the borders of town. 
Fixed a bug that allowed a Necromancer to summon more than one Golem at a time. 
Player can no longer steal Life/Mana from inanimate objects. 
Fire Mastery now correctly increases damage to the Hydra skill. 
Fixed a bug that occasionally prevented Hirelings from dying along with the player. 
Fixed the double-draw bug in some skill effects, including Blizzard, to improve framerate. 
Fixed the updating of the summonables' health bar on their icons. 
Fixed a bug with left-hand swinging on the right-hand spell selection side. 
Fixed the pop-up description for Fist of the Heavens. 
Fixed the overlapping of the character name and level name in the party screen. 
Fixed bug with Barbarian Masteries. 
Modifications 

Some Set Items now use unique palette shifted Art. 
Global Run/Walk Speed was lowered and +speed items now work on a diminishing returns basis. 
Gambling prices are now based on the character level. 
Sets and Uniques can no longer be gambled for. 
Boss monsters now do 30% less damage to Hirelings and minions than before. 
Monsters now display if they are Undead or Demon, when highlighted. If nothing is listed, they are an "Animal" type. 
General levels for monsters in Nightmare and Hell difficulty have been adjusted. 
Maximum monster level is now level 70 in Nightmare and level 90 in Hell. 
Monsters in Nightmare/Hell difficulty, have higher Resistances, Hit Points, and lower attack ratings than before. 
Poison Damage attacks from Monsters, do more damage than before. 
Mana and Life stealing effects are reduced by half in Nightmare and Hell. 
Retrieving your corpse where it died in Nightmare and Hell restores 50% of any experience lost at death. 
Adjusted the stocking of vendor inventories based on difficulty level. Adjusted how Hirelings react to missiles. 
Adjusted Hireling resistances. 
Increased the amount of Gold a character can hold in the Stash. 
Increased the power of all Gems/Skulls and added level requirements. 
Increased the power of all throwing potions and added level requirements. 
Increased the resistance penalty in Nightmare difficulty to -40 and Hell difficulty to -100. 
Sounds for Gems in inventory have changed. 
Looting corpses is available only in Hardcore games. 
In multi-player, you may only go hostile once per minute with each other player in your game. 
New Party Experience Bonus to players in a Party in multiplayer. 
Crystal Swords have an increased durability. 
Scepter class items have increased damage. 
Improvements 

Holding down SHIFT and RIGHT-Clicking, when buying health potions, auto-fills any empty slots in the belt. This applies to buying scrolls of Town Portal and Identify scrolls too. 
Holding down SHIFT and LEFT-Clicking on health potions in inventory, will auto-move them to the appropriate column in your belt. 
Improved the displays for character status screens. 
Total blocking % is now shown and is a related to a player's level and dexterity. 
Chance to Hit and Defense against last monster fought is now shown. 
Maximum Resistances are now shown in Gold color. 
Elemental damage only items, display colors for elemental type damage. 
Added a new 'Repair All' button for equipped items at the armorers in each Act. 
New Auto-Map functionality. Players can adjust the size of the Auto-Map in the "Auto-Map Options" menu, switching to the new "Mini-Map". 
Up to 16 "Hotkeys" are available to assign skills to now. 
Wells now heal hirelings. 
Removed collisions for players with pets. 
Pets health will scale up accordingly in Nightmare and Hell difficulty. 
Attention 

Players can no longer steal Life/Mana from certain monster types. 
Names of pre-existing Rare Items have changed. However, the item properties have not. 
The maximum damage of Enhanced Damage items may change 1-3 points. 
The damage of many items has been increased. 
Items with one or two sockets may gain an additional socket. 
After patching, newly-discovered Set and Unique items will have additional level requirements. 
Level requirements have not changed for Classic Set items (those discovered in the original Diablo II). 