I managed to install it on Windows 8 ultimate. The patch installer to v 1.01 doens´t run though.
Although i did have the same problem you are relating some times before.
The good thing is that all the installer does is copy the CD files to the directory of your choosing, something you can do manually using Windows Explorer.
Just copy the entire content of the Hellfire CD into the folder of your preference inside your PC, then run hellfire.exe from it.
Although the installer generate some registry entires during setup, they aren´t mandatory for the game to run.
You might also want to try this patch here.
http://www.lurkerlounge.com/forums/thread-13318.html
Its an unnoficial 1.02 hellfire patch made by an user of this very forums, who corrects lots of things still present in the official 1.01 version, plus adds some new cool features like all player appearing on automap, running in town even on multiplayer, etc...
If you preffer to use the 1.01 version, you won´t be able to run the update setup on a x64 enviroment, but you can download a zipped file with all the 1.01 files on my website here.
http://tavernadigital.net/jogospc/diablo...patch-v101
Just click the button where it says "Download Diablo Hellfire 1.01 patch (zipado)"