When launching the game Diablo under Windows 7, almost all users experience problems with color. Alot of “fixes” out there require a batch script that kills explorer.exe and restarts it after you exit diablo.exe. That method works, but is NOT ideal.
This method is a very simple fix which works for a majority of users, it involves opening the screen on Windows 7 that allows you to change your resolution. Why this works is currently unknown at this time. It should also work for other legacy Blizzard games such as the Starcraft series.