That would probably do it; you aren't suppose to have the dragon stone until after killing him at the end of Sentinel Island. The encounter at the end of the Temple of Doom should just be a conversation and then you get kicked out.
For the normal mode of D2:DC, the latest version is 1.4.700.49 (or 1.4.700.56 with the
Y axis hotfix); for the Developer Mode, the version numbers are 1.4.700.47 and 1.4.700.57.
If you don't want to invert the Y axis in dragon form, there is no reason to get the hotfix.
