Instructions
Setup
Log into the Battle.net servers and connect to "Diablo II." Select the first character that you want to use. This should be the character that has the items needing to be transferred. When prompted, click to create a new game.
Add a password to the game so that only players with the password can enter your private game. There is a box for a password just below the box where you create a name for the game. This will prevent other players from entering into your game and picking up items that you drop for transfer. Games with passwords do not appear in the list of public games.
Wait until the other character connects to the game. If you do not have a friend to help, log into the game from another computer using a second Battle.net account.
Transferring
Bring up your inventory and select the item that you want to transfer. Click on the ground outside of the inventory window to drop that item on the ground. Drop all of the items that you want to transfer in this manner.
Leave the game with your current character. Do not leave the game if you are the only character in the game. When there are no players in a game, the game disappears and all of your dropped items will be lost. Make sure that at least one character is present in the game before you leave, either a friend or a second account belonging to you.
Choose the receiving character and re-enter the same game. Make sure that you have enough space in your inventory to pick up the dropped items.
Go to the area where the items were dropped by the previous character and pick them up. Open your inventory pane if you want to be able to place each item in your inventory manually.