Found a different copy of Diablo and took the dat file from there, seems to be working now. Guess I got a bad file.

Hello all, I am super excited to try out this game.

I grabbed a copy of Diablo and copied over teh DIABDAT.MPQ file. When I try to launch, I get the following error:
"Failed to create palette file: levels/towndata/town.pal."

Any idea whats up?