1. Sorry, if you do apply the Patchm, then you cannot use the savegames you have created until now anymore.
2. It *is* possible to complete the game without the Patch, but difficult. There are severe "Quest-Breakers" in the game, and you should read here, then, to avoid these.
Good Luck ! <img src="/ubbthreads/images/graemlins/smile.gif" alt="" />
Alrik.