Disclaimer: I have no experience with MQ2 or the packets sent between the server and client. All of my responses are based off the assumption that eq was designed and programmed properly (ie, don't let your client choose how much dmg it wants to do).
As drakelord said, warping can be easily checked server-side (check locations of the player in a time frame, check buffs/effects and see if it's possible to move that far).
Damage should be calculated by the server anyway, and clients shouldn't be able to communicate directly, so I don't understand how dmg hacks work.
I did download the mq2 source the other day so I could look at how it works, but haven't gotten around to it.
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