After taking a dip back into this on a newer pc, I decided to install this gem to dive into it some. But for a 64bit version of Win7, I was running across a strange video glitch where the blizzard logo had some white behind it & then the game was running with some of the colors being rather wrong in how they were being displayed. To fix it just right click on the desktop & click on screen resolution, only posting this as it worked without having to install other patches apart from the main one off blizzard's site.

Link to the youtube clip that had the solution for me (after trying a ton of other ways to fix it) as well as showing the problem somewhat. Hope this helps others that might be having this problem.

I addition to this i had to set my desktop background to one solid colour for it to work. It still bugs out after an hour or two of playing, but then i just have to restart it and its fine again.

One fix is described here: http://www.sevenforums.com/gaming/25654-diablo-weird-colour-fix.html

That fix basically just adds a batch file to your Diablo directory that you can execute instead of diablo.exe. The batch terminate the process explorer.exe and then starts up Diablo, then once you exit the game, it restarts explorer.exe.

Another fix is supposedly to run diablo.exe in compatibility mode for Win XP SP2 and enable all of the compatibility options.