None I know of, but in HoF mode some encounters are enhanced:a few new enemies like high lvl spellcasters are added here and there. Monsters are more numerous. Etc. Loot is a bit better in this way.
I am quite sure that there items which drop only on HoF. (At least that was the case before EE... or I mixed it with IwD2 =P)
Yep, that's just an IWD2 thing. Once you beat the game and went into the harder mode wirth a new playthrough, all the unique items got an enhancement over their non-hard counterparts.
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