For BG2 atleast, I would say cheating is anything that uses a third-party program past Bioware and Baldurdash patches, or directly editing the game code.
On your first game, I would push for no cheating what so ever (unless you run into an annoying bug - after you have made sure that it is a bug). After that, though, there are mods about. These *are* cheating IMO, but they are justified on a repeat-play because they bring a fresh challenge to the game (or get you into the game itself a fair sight faster... )
Obviously, this definition doesn`t work for some other games, where you simply have to type something for invincibility, without having to edit any files.
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