Back then they still seemed to work in win98 with daemon tools 3.47. They always seemed to work, even after i updated the game to 1.11b. I made a cd image of all four cds quite a long time ago using clonecd. (classic problem i know, but please keep reading) It installs fine, but asks for a cd when i play. I havnt played diablo since i moved from win98 to winxp, which has only been about 6-9 months now. Ive observed some *very* odd behavior in daemon tools 4.08 HE compared to the last time i tried to run Diablo 2 LOD (1.11b) in win98 with version 3.47.
