Did you have the conversation with Rhode yet?
In D2:ED someone had a problem where the character froze in place going up the path to Farglow, but reported that by lowering all the graphics options to minimum they could approach the gate ok, and the dialog with the NPC there started normally. After that they could raise the graphics options back up. Another person reported that the problem went away after they reinstalled DirectX and rebooted a couple times.
