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Players of Hell difficulty Realm games are hereby warned that a new, challenging world-event has been added to Diablo II version 1.10. Players of Hardcore characters should be even more wary when encountering Superunique monsters during an active world event. Be prepared to execute a hasty Save and Exit, if your situation seems too dangerous. - Patch.txt
Stones of Jordan Sold to Merchants
Diablo will spawn in every Hell game on the same IP on Battle.net (LoD) or a Battle.net region (D2R) when a sufficient number of Stone of Jordan Rings have been sold to merchants on that server, in both Classic and Expansion, Normal and Hardcore, and Ladder and non-Ladder. Although they can be sold in any difficulty level, only players in Hell games will see the message notifying them of Stones of Jordan sold to merchants.
Every time 70-150 have been sold to merchants, players in Hell games see the message that Diablo walks the Earth.
On Single Player selling one Stone of Jordan Ring will trigger the World Event. (D2R only)
Diablo Walks the Earth
Diablo can replace any Super Unique or boss monster that has not already spawned in a Hell game, allowing some control over where he is faced. Spawning him in place of any Super Unique that must be killed to complete a quest should be avoided, as it may prevent that quest from being completed in that game by anyone who still needs to do so.
Diablo is a boss and an Evil, spawned here in place of Eldritch the Rectifier north of the waypoint in Frigid Highlands in Act 5. This is a popular spawning point since it is close to a waypoint, relatively unpopulated and it does not interfere with completing quests.
He has faster movement speed than the original and uses all the same skills, although some are actually slightly weaker. However, he has gained Diablogeddon, which is similar to Druid's Armageddon skill.
Most easily defeated by melee attackers capable of delivering Crushing Blow and benefiting from Life Stolen per hit or Life Tap, or delivering massive damage to a single target which always hits and cannot be blocked (like an Amazon using Charged Strike). Paladin using Smite has the advantage of an attack which is fast, always hits and cannot be blocked.
Reward
Annihilus Small Charm drops upon his death in Expansion. World Event can be completed more than once, but a character cannot pick up the charm if one is already present in their inventory or stash.
In D2R, placing an Annihilus in one's shared stash will not prevent the character from picking up another one.
Cannot be transferred from one character to another by selling to vendors: once sold, it does not appear in vendor inventory and is lost forever.
In D2R, can be transferred from one character to another by placing in shared stash.
Although the charm does not drop in Classic, it's still worth killing Diablo for experience.