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You need to install the patch, just like you installed the game.

Find where you saved the 1.2 Patch, and then double click on it, this will run it and have it update the game files to 1.2.

You are very light on memory, to be honest I am suprised you can even run the game, you may find performance drops after installing the patch since it adds more stuff.
 
Glad to help.
 
You are truely loved by the computer Gods. ;)