Try the following:
start C3PO and click the auto CD key check box to on
right click in the middle of the box that says [D2 win]
select launch with R2D2 loaded
now turn the auto CDkey box to off
select the mode you want (windowed is hard to see unless you set your screen resolution to something low ...

Maybe instead of hijacking an unresolved thread you should have started your own.... just a thought since my issue still hasn't been resolved.

I decided to remake my C3PO.cfg file (by copying the original out of a fresh copy)
This deleted my CD keys I had used and now I have a few quick questions:

1) the option of "Use CdKey File" has no explanation on how you write a CdKey file or under what file type (.exe/.txt/.mpq/etc...) it should be ...

Review for anyone following this issue:
I uninstalled D2 and the Expansion.
I uninstalled C3PO.
I uninstalled Avast Antivirus (by advice of Dan Goon).
I downloaded and installed MSE (Microsoft Security Essentials) (by advice of Dan Goon).
I scanned my PC using MSE, CCLeaner, Spybot S&D and a few ...

001308CC: 6C000000 00000000 FA000000 CC070000 l.......u...I...
001308DC: 02000000 F0000000 C6080000 15682A88 ....ð...Æ....h*.
001308EC: 7061CF01 01000000 00000000 00000000 paI.............
001308FC: 00000000 00000000 00000000 00000000 ................
0013090C: 01000000 00000000 00000000 ...

0012FEF8: 00000000 5A2A4000 ....Z*@.

// 0x00402A5A - R2Loader.exe - unknown+003E

0012FF00: FF7A4000 yz@.

// 0x00407AFF - R2Loader.exe - unknown+003E

0012FF04: 00004000 ..@.

// 0x00400000 - R2Loader.exe - unknown+003E

0012FF08: 00000000 3D1D2900 0A000000 00000000 ...

12:13:38.095 Annotated stack dump

// EIP = 0x6FF5E2D7 - Fog.dll - Ordinal10028+0097

0012FBA8: 00000000 00000000 00F0FD7F BCFB1200 .........ðy¼u..
0012FBB8: A8FB1200 88FF1200 30E4F56F ¨u...y..0aoo

// 0x6FF5E430 - Fog.dll - Ordinal10024+0020

0012FBC4: D7E2F56F ×aoo

// 0x6FF5E2D7 - Fog.dll ...

I have read the bug report post more carefully so here is the report following your directions (2 or 3 posts due to size of D2####.txt file):
I run C3PO.exe.
I make a new selection with no options added and window mode.
I select D2X2 as a gateway.
I select my sorceress and enter into the news/game ...

I sent you the pass code for user lvl-2 for a month by PM.

The crashing problem in D2X2 is kind of weird because no one has gotten the same problem so far.
Something may be wrong in basic environment.
So I need some more info about yours:

1. What's your OS?
2. Are you using any other D2 hacks?
3 ...

1) Just send me a PM after you donate proper amount.

2) Do you mean you're still getting Lvl0 in D2X2 server game?

3) Please check if Windowed mode results the same.
And then check if Full screen mode without -d3d results the same.
On what server did you get this error, Bnet or D2X2?

4) That ...

It's several different things so I will put #s
1) Easiest first.... if (duh when) I choose to donate to upgrade my certification to user level 1+ does that require a donation, then I tell you in a post, then you set the upgrade OR is there somewhere I can make a change to get a higher level?

2) I ...