No, I believe V0.96 is the latest version (although I don't really use it anymore so I'm not totally sure).
From what the guy said, it appears he may have been going to play on 1.10 on Open (hopefully Open, since obviously edited characters won't work on Closed) B.net, in which case Blizzard will command you to update to the newest Diablo patch, 1.11b. Just follow along and you should automatically be able to get it.
If it says to get something at the Blizzard site, it would have nothing to do with the Hero's Editor, since I'm pretty sure Blizzard would rather spit on it than update it for you.
If you can't update it online, go to the site here:
http://us.blizzard.com/support/artic...3&pageNumber=1
Download the correct 1.11b patch for you, and follow that installer to update. If you already are updated, feel free to try reinstalling the game (first backup save folder just in case) and updating to the latest patch, then trying again. Good luck.