Did you start a new campaign? 1.2 is not savegame-compatible to 1.1!!!

Both points of yours sound to me like a bugged installation, are you sure that FD was copied to its right place and that EB is rightful installed?
RTW patched up to 1.5
EB 1.1 into the RTW folder
EB1.2 into the RTW folder
fixes for 1.2
FD
?

XSamatan