This is the correct order from disc installation :
1- Install Diablo II 1.00
2- Install Diablo II LoD which is 1.07
3- Install LoDPatch_110.exe which is 1.10 ->
http://files.arimyth.com/HU/LODPatch_110.exe4- Install HU 1.3b Core
5- Install either HU 1.3b HighRes r2 or NormRes r3
6- Run D2ModSetup, be sure it asks to INSTALL
If you install from Blizzard downloaded discs, the installation process is different since you will have to actually DOWNGRADE the installation to 1.10. Info about this can be found here -> viewtopic.php?f=9&t=1288
Hope it helps.
Here is the order of install from duffbeer and i would guess if you have old version still on skip to steps 4,5 and 6 and u should be running