True to the spirit of our TSW alter-egos, Caroline's got a wrench-wielding engineer while I have an elementalism-happy embermage. We initially started with the difficulty setting on Normal, but as Penny Arcade pointed out, Veteran is a much more satisfying experience. Walking around in Normal makes you feel like a demigod, and while that's fun for a while it eventually gets boring. Veteran requires you to be a bit more thoughtful about your tactics and skill selection, and the danger of going splat during a boss fight is a very real concern. Winning, therefore, is much more satisfying.
Multiplayer in TL2 takes the best qualities of Diablo III's mechanics (individual loot, instant teleportation to teammates) while eschewing the annoying ones (permanent Internet access, server instability). LAN play does have a few issues, but I think that may be because our router's a bit old. All in all it's been a happy, rowdy affair playing TL2, and it's a relaxing way to unwind.