I had this same problem.
Download the Windows Installer Cleanup Utility.
EDIT: Found a link that works:
http://windowsxp.mvps.org/msiclean.htm
Uninstall the game, reinstall it, download the patch (but don't install it), then run the program.
Once you run it remove "Rome - Total War(TM)[1.0]"
and "Rome - Total War(TM)[1.2]"
Install the patch and everything should be good.
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