From what you have said you are sure you have the SF version of the Game and the SF1.02 patch.
So lets get a few things out of the way.
1) You downloaded the patch and did not try and run it from the site, right?
2)You are trying to install the patch to the right directory on your hard drive and not onto the CD drive?
3)What is the path you installed the game to?
4)What is the drive letter for your CD rom drive?
5)When you installed the original game you had no problem with the install? And you have made no modifications to the files, and you can play the game 1.00 normally?
So lets get a few things out of the way.
1) You downloaded the patch and did not try and run it from the site, right?
2)You are trying to install the patch to the right directory on your hard drive and not onto the CD drive?
3)What is the path you installed the game to?
4)What is the drive letter for your CD rom drive?
5)When you installed the original game you had no problem with the install? And you have made no modifications to the files, and you can play the game 1.00 normally?