Loadnetwork320

I am trying to run Diablo 2 using Daemon Tools, and I think I'm missing a step somewhere. I used the mounted ISO's to do the installs, and everything went very smoothly. Once the game plus expansion were installed, I mounted the expansion ISO to the drive, and clicked on the image to run it. It brings up the 'Play Diablo II: Lord of Destruction' window. I click Play, and after about 10 seconds, it gives me the, 'There is no disc, please insert the disc and click retry' message.
I have tried creating an ISO using the MDF/MDS format, MDX format, as well as the basic ISO. I have tried each of those 3 options on all 3 different types of virtual drives (DT, SCSI, and IDE), and what I explained above happens every single time regardless of the setup.
I'm at a loss as to what to try next. Any help is appreciated. Thanks.

Heres 2 quick HOW-TO's on how to play d2 without a cd and in windows mode!
PLAY IN WINDOWED MODE...
To play in widnowed mode is simple... Just go to the shortcut/icon where you normally start DiabloII from, Right click it. Click Properties... open the 'Shortcut' tab.... when there you will see a textbox labeled Target and it should be C:Program FilesDiablo IIDiablo II.exe' or something along the lines o this.... and alls you do is add a -w at the end of it.. so the final product would be C:Program FilesDiablo IIDiablo II.exe' -w
ENJOY!!!!
PLAY WITHOUT CD
You must first have the Diablo 2 Lord of Destruction disk to do this.....
Instructions!!
1: Insert the Diablo2 Lord of Destruction into your disk drive.....
2: Go to My Computer
3: Open the Diablo 2 Lod Disk 'as in View the files on the disk'
4: Once inside you will need to copy 2 files 'D2XVideo.MPQ' and 'D2XMusic.MPQ'
5: Now navigate to your Diablo II folder... Default is C:Program FilesDiablo II
6: Just paste them in...
7: Enjoy!!! you should now be able to play without a disk!!!
ALTERNATIVE
-If you have purchased the game and register the keys with your Battle.Net account you can download the game from the site..