Same Problem...
I've got a 13" 2 gig MacBook with Tiger (10.4.11). I put Diablo II in, it took it a couple tries to spool up, but it mounted and I began installation. 'Bout 1/5 of the way through it sounded like it couldn't read it, stopped spinning, and ejected it with an error message (Error 35, I believe). Now it only tries to spin it a few times then spits it back out. Really dumb.