OK, I found out that you have to "Unpack" the patch, and you can only do this by downloading a program called WinAce Archiver, I got it off of a link on the microsoft website.
Once downloaded just use the program to unpack the patch, and place the 7-10 files that came with the patch in the machines folder. It's really easy. I hope if anyone else is having the same problem that this helps...
I love this game ^.~ thanks for your help guys.
OH, I almost forgot to mention, you can download WinAce Archiver for free from http://www.winace.com Good luck everyone ^.^