G'day Insaneguy,
Well on the proviso that you correctly installed the 1.2 Fix (3 files to replace), as i did, I had a similar problem to yours & found out that BF1942 does not accept a refresh rate higher than 60Hz.
So if your desktop refresh rate was higher than this I found that it would simply not switch over to the game as you said.
The solution : go to your :
BF1942 directory>Mods>bf1942>settings & open the video default directory (a con file) with Notepad or wordpad.
When opened, the bottom line "renderer.allowallRefereshRates 0" as you can see the game doesnt allow refresh rates as the setting is 0 - change this value to 1 - as follows :
"renderer.allowallRefereshRates 1"
exit, save & you should be ready to go..... hope it works