I was successful in loading the original and patch 1.04b to a non-Program Files folder, and applied the file changes for the no-DVD fix, but could not get the latter to work. I checked file sizes, etc. to be sure the copy to the base directory was successful, but after a reboot it would not start without the DVD check.
So, I gave up and went to the link provided earlier by Capt. Lehman from Subsim.com to Amazon.com and bought the later version. I also bought SH4, knowing there are issues with it, but what the heck, I have to give it a go and learn for myself.
Hopefully the new SHIII disk will at least eliminate the one problem. I'll post when I have a chance to try it.