So what's different about this as compared to the original release? I'm a huge fan of the series, and while I loved the story AC had I'm definitely willing to admit the game play of the first game had some flaws. Does this actually fix or change anything? Or is it really just Assassin's Creed: The Patched Version?

What are you talking about? This is wrong. Every single copy of the PC version when released at retail was called "Assassin's Creed: Director's Cut" which had a few extra activities added in that the console versions did not. But there was no patch that added in things afterwards. And I thought the PC version sold well. If it hadn't there wouldn't be an Assassin's Creed 2 for the PC, you know?

To answer the OP, there are 1 or 2 new activities added in to the city when you go around investigating and I think they added in a fast travel option. If you own a PC version of this game, you already have the Director's Cut. If you own a console version and thought the game was just okay, you "might" want to give this a try. At the very least the story is great enough to warrant a playthrough.

I meant that it didn't get into the console version, my bad.

Fast travel was in the 360 version. Also, it should be noted that the new activities are replacements, not additions (usually pickpocketing or listening became an informer assassination mission).