"the game used to load with the v1.32 version, but now it keeps prompting me to insert my 'Game' CD."
Sounds like maybe the copy protection got updated, causing a conflict with your drive. Do you have a different optical drive you can try? Maybe
contact CDV, or wait and see if Lynn (or another Larian) has any advice.
(CDV changed their site around, the link may work now - it worked for me once, but now crashes WebWasher if it is running, or shows up as a blank page if it is not)