Rune spells not absorbing spell damage.
 

Example: I cast rune III or IV. I engage a caster mob, it nukes me for 350 damage. The 350 damage is coming off my hit points and the rune is still on me, untouched. It seems like the only thing runes are absorbing is melee damage. I know for a fact it wasn't like this on live.

I thought the rune spells were melee damage only.

^

They're not supposed to be melee damage only, is the point. In fact, the entire rune/skin line (nec, mage, wiz, enc) always absorbed direct spell damage on live.

http://en.wikipedia.org/wiki/EverQuest

Lastly, Enchanters possess the unique Rune line of spells, which creates a magical protective buffer against all forms of damage until it has been worn down.

Also, I guess I should have searched, but this has been reported previously:

http://www.project1999.org/forums/showthread.php?t=2900

Working as intended I suppose. I remember specifically using rune on raids on live to block DD spells, etc.

Even to this day on Al'Kabor, which goes up to PoP and does not have any significant changes to the Rune line of spells, Rune does not absorb magic damage.

The spellshield line of spells does. Perhaps that is what you are remembering?

Once upon a time Rune blocked spell damage. Going to assume this will be fixed when Kunark is released!

No, spellshield line of spells didn't even exist until LDoN. Also, even if a server presently goes up to a certain expansion, there were many changes to spells and abilities over the years that were never part of the original expansion they originated from.

I also seem to recall that Runes absorbed spell damage along time ago, I was somewhat surprised when I was being nuked in Uguk and losing health with my Rune still on (when I just started on P99.)

No, both spells blocked direct damage spells, but spellshield only blocked spells. I don't have a manastone here but does that damage get absorbed by rune/skin? It should.

I have a character on Al'kabor, but he isn't an enc or class with the skin line so I can't really test this easily there.

Uh, false.

I quote Al'Kabor only because we have not received an update since the release of PoP. In fact, we even have many encounters in the EPs that are beta. Since there was very little support, there were virtually no updates.

Spellshield spells that existed Pre-LDoN:

Manasink (Kunark): http://lucy.alkabor.com/spell_1728.html
Niv's Harmonic (Kunark): http://lucy.alkabor.com/spell_1763.html
Spellshield (Luclin): http://lucy.alkabor.com/spell_2559.html