D2:ED was designed for a dual core processor, though there is a single core optimization option.

At least with the Xbox version, hitting New Game produces a loading screen, and then an intro video plays (showing Damian on a flying fortress, and then a slayer stalking a dragon knight), after which the character customization screen comes up. Once you finalize your appearance / voice, another video plays (flyby of Farglow following a ladybug, then showing the airship arriving).

If you go through the game folder, can you view the videos in Windows Media Player?