ok i had the same problem, i installed the game patched v 1.03 and then mounted the CD crack. and it would just give me the CD loading image and wouldn't load the game.
i then went to the Deamon tools web page. they have a listing of most games and their CD protection type (very useful in this case if you didn't know about it)
the CD protection type for KoH is Securom. you can turn it on by right clicking on deamon tools/ emulations/ Securom. make sure its checked and this might work for you as it did for me, i am also useing windows XP/SP2.
Gl and enjoy if you get it working
PS i also did not install/use the fixed .exe file for V1.03