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In Iceland you should have the Nordic version wich is at 1.02.
Anyway, yes, you can apply the patch and continue your game, however, it is recommended that you start a new game. Many fixes change the starting position of the countries and events that could have happenned prior to your current position in the game, so for max enjoyement, you should start fresh
Another little question. I'm playing Austria and the year is ca. 1450 and Albert V is still the monarch despite being dead for about a decade, so Friedrich V should really be in charge. Does the patch fix that as well? That is does it install Friedrich V as the monarch?
There have been a whole host of changes/improvements/fixes since v1.02 so that may have been fixed.
If it hasnt then please post in the Bug Reporting forum.
You can still carry on with your saved game.
Make a copy of the EU folder and patch that to 1.05
You can then finish your saved game with the original and play the patched copy for future games
