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I think I saw the unhandled exception error in another post, but I may be wrong. You haven't tried using one of the no cd/fixed exe cracks on it have you? If so, try removing it (I dont know if they alter the game.exe because I've never used them) or re-installing Diablo 2.
Also, unless you are planning to run Diablo 2 or any other game from an image file on your hard drive, you dont need the virtual cdrom drive, so you can disable it from the Daemon Tools options.
If you still have problems, post here again, or theres a forum on the Daemon Tools website...
####://www.daemon-tools.com/ikonboard/ikonboard.pl
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