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http://forums.runicgames.com/viewtopic.php?f=9&t=9523
That being said. Check this out: http://www.runicgamesfansite.com/downloads.php
And to download/install/manage your mods, I recommend this: http://www.runicgamesfansite.com/downloads.php?do=file&id=698
Not sure what everyone else is running. I mainly have reskins and custom classes. I've left most of the base mechanics of the game in place. There is a column in the corner that lists the most popular files. You can look through those to get a good idea.
Oh wait, I almost forgot! You want a must have mod? This is a must have mod!
http://forums.runicgames.com/viewtopic.php?f=5&t=10039
http://forums.runicgames.com/viewtopic.php?f=20&t=13720
Just to counterpoint this statement- installing mods in Torchlight is literally just unpacking them to C:\Users\User Name\AppData\Roaming\runic games\torchlight\mods. That being the case I can't see why anyone would need to install a third party mod manager.
Lastly, a simple Google search of ModDrop turns up many complaints against the program. Buyer beware. . .
1- Many people do prefer to have a one-click solution for mod installs
2- A mod manager offers features for managing and backing-up your mods between computers.
3- All of the "simple google search" results with complaints come from a single community, which just happens to have a rival website and mod manager.