For anyone who might be startled by this post, hear this: Diablo 2 runs like garbage on my G4MP/500 in RAVE mode. I had 320MB of physical RAM, a maximum install, music off, graphic options minimal, the music file copied to the hard drive, and it was still just shy of unplayable in a 5-player multi game.
Then I saw a G3/350 with 128MB of RAM, and it was running much better than my machine which cost twice as much a year later. I was a little bit concerned, and soon discovered the difference: he was running in software mode.
I immediately switched my rendering mode to software, and the game runs perfectly. Not a frame dropped with any number of creatures or spell effects on the screen, except the occasional stutter during a level load.
I've reported this phenomenon to blizzard tech support, and expect a response in a couple days. If Diablo doesn't run as well as you think it should on your computer, try changing rendering modes.