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Q:What is Normalized damage?
A:From 1.8.0 patch notes:
- Instant Attacks
  The mechanics of most instant melee attacks have been modified to
  improve item balance. Previously, instant melee attacks did damage
  based on the damage range of the weapon, plus a bonus for the
  player's attack power. This bonus was then multiplied by the speed
  of the weapon. As a result, slow weapons did more damage than was
  intended, and fast weapons were considered inferior by most players.
  We have changed the way the attack power bonus is calculated for
  instant attacks. This change does NOT affect attack power
  calculations for normal melee attacks. Instead of multiplying by the
  speed of the weapon, the attack power bonus is now multiplied by a
  fixed number pulled from the following table:
    + Two-handed weapons: 3.3
    + Daggers: 1.7
    + All other one-handed weapons: 2.4
  As a direct result of this, many weapons have shifted position in
  their relative power. In particular, many Epic (purple) quality
  items are now more powerful than slower Superior (blue) weapons.
  This change was not made to reduce the power of instant attacks, but
  to correct the relative imbalance of weapon itemization. At a given
  level requirement, epic quality weapons should always be more
  powerful than superior quality weapons.
  Please also note that all normal weapon swings will be completely
  unaffected by this change. The following abilities are affected by
  the design change: Sinister Strike, Ambush, Backstab, Whirlwind,
  Mortal Strike, and Overpower.

Before, total damage was:

Base Weapon Damage + ATK/14 * Delay + Bonus

Where Base Weapon Damage is the numbers displayed on the item tooltip, and Bonus is the bonus number (if any) in the attack tooltip (e.g. Sinister Strike adds 68 damage).

After the change, for normalized attacks (e.g. attacks that have the "Normalized Weapon Damage +" effect in the Thottbot spell details), the delay is replaced with a static number based on weapon, using the table above.  So Sinister Strike with a sword is (before talents):

Base Weapon Damage + ATK/14 * 2.4 + 68

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