The key difference in D&D between Halflings and Hobbits is that TSR was sued by Tolkien's estate for using the name Hobbit, so they adopted the less unique "Halfling" to indicate the same type of creatures.
that is a false statement on the posted site there greek..i had personal correspondance with gary gygax himself (creator of D&D) and he informed me that ALL of dungeons and dragons was originally created specifically to role play LOTR..TSR..the company he sold D&D changed the name hobbit to halfling to avoid the impending suit you mentioned..here's something else for you D&D freaks..the original manual "DEITIES & DEMI-GODS" had stats for Sauron and even Jesus Christ..the reason it was banned