I was making a fresh reinstallation today and I tried 4 times and it kept freezing at the Video test part. It has never done this before in all the times I have installed its weird.. Any suggestions?

Maybe try doing windows updates, make sure your D2 folder is completely deleted when you reinstall and maybe download direct X 9?

Check your d2 folder and direct x...is it updated to 9?
Check Add/Remove Programs under control panel and see if d2 is uninstalled there...[just to make sure lol]

just a question, will d2 work if you don't run the video test beforehand? cuz you could try skipping it.

I tried skipping it doesnt work just keeps saying insert cd even when it is

Are you installing with burner drive while there's a CD in CDROM?

Also are you using a burnt version to install with...?

Try turning down hardware acceleration for your video card a bit.