OK, this falls apart at step 1...
25% x 7 x 7 x 7 does not equal 8,575. It equals 5.25!!!!
Quote: "According to recent databases, the prefix Gnaw and the suffix Fold no longer exist, however they did in 1.07. I was one of the lucky few to recieve this ring randomly from as far as my memory serves me, from the gidbin quest."
Aw, shucks. That means we can't verify it. What are the cahnces of that happening. Wait, maybe somebody else has it too. But...
Quote: "In the "Hell" mode of diablo lod, diablo has a 0.05575% chance of dropping a Dol rune"
OK, now there is virtually no chance of verifying it. You need version 1.07, you have to get to the end in Hell mode having performed the Gibdin quest (perhaps), and then you have a 0.05 chance of seeing the scenario play out.