Just an update - I was able to extract the fallout.exe from the f2patch.exe and then manually place it into the game folder. Seems to work fine and sfall does not complain.
Hopefully someone can help with my issue in Windows 7 (64b).
They game runs fine (other than fmv graphic issues that I can deal with) but I cannot run the 1.02 patch. When I try to run f2patch.exe I get this message:
The version of this file is not compatible with the version of Windows...