Export: I didn't do anything special. I got the weird rainbow colour glitch, also seen in Starcraft, but that can be fixed either by leaving the Windows "change desktop resolution" window open, or closing explorer.exe (oddly enough). Have you installed it in Program Files? That can often cause problems, apparently. If you have, try installing it in something like c:\games\diablo.
Other than that, I could only suggest finding a torrent of it and seeing if that works any better. There's one on TPB with Hellfire (normally I wouldn't suggest pirating a game, but you can't buy this off the Blizzard site like you can with D2. Any way you buy this game, Blizzard won't be seeing a penny).
I do indeed install to c:\games\diablo. I've done everything suggested and so far nothing has worked. I hope it's not my disc dying. I'd be so pissed.