The unpatched game will not run with a DirectX version newer than 7. The installer will not detect DirectX during the system check (just like the unpatched game), but this is not a problem, as you can continue. Both patches are needed, as the 1.3 patch fixes the DirectX issue, and does not contain the 1.2 patch. Use Windows 98 compatibility mode to install and run the game, because running the game without it will not allow you to select resolutions higher than 768*512, and the game needs to be installed with Win98 compatibility mode for it to run in compatibility mode too.