A new patch for Torchlight II was released a few days ago and fixes many things in the game and changes how some of the things work in Torchlight II. If you are on Steam the patch will automatically download straightaway.
Patch 1.14.5.5 was released on 18th October 2012.
Patch 1.14.5.5:
Graphics
- Intel HD graphics cards should not show ghosting/smearing effects if shadows are enabled.
Performance
- Large performance optimization to buff/debuff bar displays when there are a large number of overlapping, nonexclusive effects.
Skills
- Shield Bash bonus damage now deals the stated amount.
- Wolfpack will properly strike turrets.
- Bonuses due to proximity now always expire properly.
- Damage bonuses/reductions for Battle Rage properly expire.
- Fixed Critical Hit bonuses on some effects not properly incorporating bonuses to crit.
- Pet damage bonuses are applied to effects.
Levels
- Three Sisters zone now has an appropriate level range for proper NG+ reward scaling.
- Various issues resolved in Luminous Arena in multiplayer.
- Level determinism fixed.
Items
- Set reward for Inquisitor set altered to a functional bonus.
- Fixes to the summon skull proc on equipment.
- Effects based on proximate monsters now work properly with socketables.
- DOTs were not properly attributing experience if the effect was applied from an item instead of a skill.
Misc
- Target Dummy is charm resistant.
- Fixed issue where rebinding Close All Menus could lock you in pause mode.
- Fix for shift-click casting a left-click spell and them selecting an item.
- Pet enhancing bonuses work more consistently for pets with other pets.
My other Torchlight II related posts:
King Toko 
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