Diablo not working

I borrowed a friends diablo cd and installed it on my computer.  After playing it for a bit, I decided I liked it and got my own copy of diablo.  I first inserted my own CD into the drive and tried to play it (without uninstalling).  

When I started it up, the player selection screen was "washed out" in both single and multiplayer mode. That is, the animated diablo logo at the top was fine, but everything else was yellow (including the background) and the pictures of the characters were quite wierd.  In addition, Diablo would crash at random intervals, and I couldn't enter the dungeon (below the church) without it crashing 1/4 of the way into the "loading" screen.  I can enter all the other levels (caves, hell, etc.) fine, with only periodic crashes, but the crashes are really annoying.
(Note: If I use a weapon with the haste modifier it crashes after a few swings)

I have uninstalled diablo using the control panel add/remove programs and the diablo CD uninstall, and I have reinstalled Diablo numerous times in various directories applying the patches up to v1.4 (I haven't heard of any higher verions yet)

I have verified the integrity of all the dll files that diablo.exe depends on (using a dependency checker) and I have come to the conclusion that it must be something other than a dll file.  I reinstalled using my friends cd, and then used my cd - and still the problem persisted.

However, I installed a spawn copy on my system, and it worked perfectly.

I am completely out of ideas and would really appreciate some help

Thanks