Oh, just to be absolutely sure I don't screw anything up and have to reload that 1.2 patch again (I'm starting to call it "the punishment patch"), what I've been doing with the EB.zip file is clicking it, opening it, highlighting the files then moving them into the Medieval II folder...yeah, yeah, an IT guy I am not...
So just don't even worry about moving that stuff and run the exe into the Medieval II folder?
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