Blinded
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A blinded character is unable to see. Attacks made while blind have a 50% miss chance and a -4 penalty to hit. Spells that require targeting others cannot be cast as a direct line of sight is required for this. The game's AI handles blindness poorly, and blinded entities controlled by the AI will not attack at all.
Gameplay Notes
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Oddly enough, in NWN2 (as in NWN1), a character suffering from this condition can still use (i.e., read) magical scrolls.
DnD 3.5 Comparison
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A blinded character takes a -2 penalty to Armor Class, loses his Dexterity bonus to AC (if any), moves at half speed, and takes a -4 penalty on Search checks and on most Strength- and Dexterity-based skill checks. All checks and activities that rely on vision (such as reading and Spot checks) automatically fail. All opponents are considered to have total concealment (50% miss chance) relative to the blinded character.