Can someone explain what stats do and what the magic effects on items do ie 'enhance effect' and such, help with be deeply appreciated.

You can find your answers here http://ladderslasher.d2jsp.org/index.php?g=15

I would recommend looking at the other tabs in order to get a better handle on the game. Also, you this will give you the basics to get you slashing http://forums.d2jsp.org/topic.php?t=43961870&f=276

Finally, feel free to PM me if you have any more questions

thanks