I agree with you on the "free kick" and "offside" matters.
The offside algorithm must be downright wrong, there is no other way to explain it. I find offside to be definately worse than in FM07.
Free kicks are so bad now, it's unbelievable. I am talking about free kick crossing, basically. In FM07, I focused on having a tall (= high jumping) team and based my success on indirect set pieces. In FM08 I can't even win a header from free kick crossing, the ball always goes straight out for a goal kick or is passed to a opponent. Some pretty poor programming there, which is suurprising because set pieces worked really well in FM07.
Apart from these two issues, I like FM08 better than FM07. But these two get on my nerves.