I'd try installing the patch again, to make sure that really was the problem, and there wasn't just a glitch the first time the game and patch were installed.
Before reinstalling the game, did you try running the configuration program and use different video settings? Even if the patch does cause the problem, maybe the Direct Draw or Software video modes would be ok.
If the problem is the patch and none of the configuration options can help, the previous 1.32 hotfix may not cause a problem. I may have it backed up somewhere, but it is not in my DD folder.