patching?

[Phat-Boy]

The Sims v1.0 [951 KB] Backup CD / Fixed Execxutable

Create the following temporary directories:
TempDir : C:\TEMP\CD
Copy the full contents of the original CD to TempDir.
Extract the PATCH.ACE archive to to TempDir.
Execute PATCH.BAT from within TempDir to patch the game.
Burn the contents of TempDir (DATA - Mode-1) to a CD-R with this CD-Label: The_sims
Play the game!

My question is. How do you copy the full contents of the game to the hard drive and do the patch, when the .exe is inside the setup? If you have to install the game and then burn it back, how do you repack it?

Any help would be great