While the Characters are still 2D sprites, Bioware has tweaked the animations as well, the characters now have a much smoother look and feel, and allowing HUGE new characters (this feature is also in Icewind Dale).

The Games engine now allows resolution increases, the default resolution is 800x600, and it'll even go higher they have stated!!

(Diablo II take notice!!) 

While your characters won't be able to run, their walking speed will be about 30% faster than before, and the collision detection / path finding has been refined even more (That was a major part of Baldurs Gate that got on my nerves, but TotSC did correct it a bit)

The #1 thing everyone wants is higher levels, and you'll get it! You will be able to import your characters from Baldurs Gate or even create a new one, you'll start out either way with 7th or 8th levels for your characters. We don't know if certain weapons or items will be removed from your characters inventory when you import, such as Drizzt's Weapons and Armor.. <g>

Baldur's Gate II will have a much larger and longer story which is another thing people have asked for, and now there will be lots of optional side-quests that you can take on, and even some of the quests will be class-specific! (Another cool feature).

Monks will be a new class in Baldurs Gate II, yet they aren't a standard second-edition Dungeons & Dragons character class, but Baldur's Gate II will include them anyway. In fact, the game will include expansion rules for all of the base D&D character classes. That is, you needn't simply be a plain old fighter: You could be a berserker or a wizard-slayer. Paladins can be cavaliers or inquisitors, while thieves can opt to be assassins or swashbucklers. Magic-users will still be able to prescribe to specialty schools as in the first Baldur's Gate.