GWX Patch problems

[JudgeDredd]

I have recently reinstalled Silent Hunter III this way...
1. Installed Silent Hunter III
2. Installed 1.4b patch
3. Used JSGME to create the mod folder
4. Installed the Grey Wolves 1.0 mod (thx to the developers of this). I then and installed
5. Ran JSGME to activate mod

When I ran the game, I had no sound past the Ubisoft menu and intro screens. I then downloaded patch 1.02 to see if that would help, but the patch will not install, telling me I have a mod installed with JSGME...but I don't. I've disabled the mod.

The msg box says
Setup identified the following problem(s) with the selected folder:
-Modifcations installed via JSGME were found. Please disable all mods before continuing.
-key GWX files were not found. This patch must be installed over a copy of silent hunter III containing GWX(with or without existing hotfixes). Please ensure that the selected installation has GWX installed before continuing

Trouble is, I have disabled the mod in JSGME and I DO have Silent Hunter III installed over my Grey Wolves 1.0 installation.

Can anyone give any pointers please? Thx