Did you run the patch after you downloaded it? Under Windows XP it must be installed from an account with administrative privileges.
Some of the story fixes in the patch are not retroactive, but the technical fixes will help (the patch gives you 2 (by default) quick saves and has other improvements, even without starting a new game).
Do you have a recent save you can reload? Once you got close to the house there should have been two cut scene conversations, one with the mage/wasp and one with the queen bee. If not, check out the 'lost items' post for the key.
