The following is greatly simplified and is from my admitedly limited experience and a viewpoint of a person in the middle of this pack. So my drawing lines for those above me in OTB rating may well not be accurate. I have also been pretty inactive in chess for many years until coming back to this site, so the differences might have changed slightly in that time -- though I doubt by much.
D-J = poor understanding of opening play, poor understanding of middle game play, poor understanding of endgame play, drop pieces and pawns regularly, miss basic tactics
B-E = basic understanding of opening play, basic understanding of middle game play, poor understanding of endgame play, drop pawns regularly, miss complex tactics
Expert - C = good understanding of opening play, basic understanding of middle game play, basic understanding of endgame play, rarely drop anything in unforced lines, sometimes find complex tactics
NM - B = solid opening play, good understanding of mibble game play, basic understanding of endgame play, don't drop unforced pieces, regularly find complex tactics
2400+ - Expert = solid opening play, solid middle game play, good to solid endgame play, doesn't drop pieces or miss tactics.
Lots of overlap between the levels, but in my experience this seems to be about where things sit.
The big differentiators are endgame play and tactics. There are class C players who know their pet openings as well as any GM, but have limited understanding of what to do in the middle game once they reach the end of the book. The lack of understanding happens because they don't know what trades are best for them because of the resulting structures in the end-game.
Tactics just continually get better as you go up the chain, as does the understanding of how to create tactical problems for your opponent.
Using the USCF class system. What are the common characteristics of each class of player?
I am somewhere around class C and D. I am actually in the process of leaving class D and advancing into C. I would like to someday make it to expert. Will an expert or above please tell me what they observed are the key features of each class as they rose. What do you have to know to be a member of each class? What was it specifically you learned that made you advance out of one class and in to another?