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I am having the same problem. Intro videos play, then I see my monitor switch resolution, then I'm dumped to the desktop.
My system is Celeron 450, 256MB mem, C - 8GB disk, D & E - 46GB disk, D - 36GB partition (game is installed on D), E - 10 GB partition. CD ROM drive is on F (and no, it is not an option for me to change this to D). Video card is a G-force 256, sound card is SB Live. My CDROM drive id is "ASUS CD-S340" (I think it's a 32X)
I welcome a dialogue with Paradox to solve this problem as I am apparently not the only one suffering from it. If Paradox would like me to test things for them, they are most welcome to contact me at t_therkelsen@hotmail.com
EU requires a resolution of 800 X 600 (16 bit). If it isn't able to get that resolution it will not start the game after the videos. Can you switch to that resolution by using display properties?
Just downloaded the patch today, tried it, and got exactly the same result. Just as version 1.08
However, I did notice something different. Just before I got thrown back to the desktop, both CD players started spinning. (Well, just the first one actually started, as it contained the CD. The burner just activated it's LED).
That got me thinking. As a citizen of the Netherlands, I naturally assumed my legal copy was a BEN version. Just to be sure, I took the box out of the garbage bin, and checked the labelling.
To my surprise, it is a UK version !
So I just downloaded the UK patch, and it works like a charm !
I guess the copy protection scheme is different for the various localisations of the game.