How is your computer connected to the Internet, wired or wireless?
Have you tried creating a new Windows account on your PC and then installing the Battlenet launcher and D2 there and see if it will run from there?
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Interestingly enough, it just started working after about 18 hours with the issue.
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Computer is wired directly to my modem/router combo with cat 6 cable. I can try creating a new user account and see if that helps but all other games are working just fine, including other battle.net launched games.