Alright, I'll respond to everything here:
My merc is indeed an Act 2 Nightmare Merc. I got him at level 25 and leveled him all the way to 75 with me, and will continue to. He has Shaftstop, Tal-Rasha's Helmet, and a Rare spear with 150 damage or so. He still dies like crazy, even against Act 1 Hell monsters.
Right now, I only have two of the usual "endgame" Hammerdin items: Sandstorm Trek boots, and Magefist gloves. I'm also using Peasant Crown, The Eye of Etlich, Sigon's Armor, Sigon's Belt, a +2 Paladin skills shield, a "Spirit" runeword sword, and two really crappy rare rings with some AR and resistances. Some of this is okay equipment, but not really helping.
I can't do MF runs, because none of my characters have the equipment to survive the runs, or to get high enough MF to get anything. I know everyone says a Skelemancer can MF naked, but mine (built exactly as everyone else's is) gets destroyed not only by bosses, but also by small groups of Hell monsters.
My damage naked and without an aura is actually around 1200. I have no +skills charms either, obviously. My merc has trouble surviving anything past the Countess Quest in Hell Act 1, so having him tank isn't really working. Also, it's not that I can't hit the enemies... it's that, in stopping to let my hammers loose, they gang-rape me. It might be the fact that I have only 500 defense, or that my block rate is under 10%, but I get destroyed in a few seconds in Act 1 Hell. I'm pretty good at aiming my hammers. It's just survival that's the problem for me, and I think getting that endgame Hammerdin equipment would fix that.
Base Stats:
Strength - 90
Dexterity - 30 (but all stat points from now until forever will go into it, getting it to 100-something)
Vitality - 350
Energy - none
Skills:
Hammer - 20
Concentration - 20
Blessed Aim - 20
Vigor - 17 (will max before I start working on Holy Shield)
Redemption - 1
Prerequisites - 1
Holy Shield, as soon as I max Vigor in three levels, will get every single skill point from now on. I should be able to get it to 15 or 16 or maybe more.