Some points to consider to ensure you've got it running bug free:
- There are no Phys Rogues in HUv1.7 (I forget if they were removed from v1.3 that I started modding from or if I removed them and forgot why (unless I remember, I'd be open to returning them)). Similarly, there's no A3 P&Bone merc.
- Characters should start the game with 30 stat points and $10k to spend. I'm partial to starting a new char with with a cheap Dagger (They have a +3HP&MP/Kill automod, which is very effective to start the game). You shouldn't have to punch things to get started, but you have the right to do so.
- Characters receive +3 ARating per Strength, but this was delivered via a hidden passive skill all players have so it inherits the D2 bug where the stats granted by passive skills won't update until the skill's level changes (or you enter a game). With that in mind, you won't see the ARating improve as you place a point into Str. You can toggle the hidden skill's level by equipping anything with +AllSkills (i.e. keep a 2-handed weapon or class-item on switch). After the toggling you'll receive the +ARating (If you dumped all your 30 starting stats into Str, then you'd notice the lack of +90 ARating). After about char level 30 you won't notice the +15ARating gained from dumping your level-up stats into Str, so you can ignore this feature/bug. There is a similar issue with Barb's Weapon Masteries, IronSkin, and Sorc's Elemental Masteries (spend your skill point, then if the effects are important to you then toggle your +AllSkills level (re-equip something with +AllSkills, cast BCommand, etc)). Personally I ignore this issue after char level 1.
With respect to D2SE, as a player you shouldn't have to worry too much about this. You've installed it, so you've got a Mods folder in your D2 folder, but all you should have to do is create a new folder for HUv1.7 within it, and extract the files from the compressed packages provided in the main download thread. When you run D2SE, make sure you press the "Start Plugin" (i.e. start a D2 mod) button instead of "Start D2" (i.e. start Vanilla D2 regardless of mod files, which I'm sure is exciting from a debugging point of view). I don't think there's much more to worry about since the D2SE.ini file should be setup for you by the Modder. That file is what tells D2 to run with -direct -txt as well as to use the D2ModSystem built for D2:LoD v1.10 (So if you're using D2SE, you shouldn't have to patch to v1.10, but note that Blizzard's current D2v1.14 isn't compatible with D2SE at all).