Figured out my problem was more of a Vista issue than a compatibility issue. Thought I'd post my findings in the event someone else wonders onto the same issue and searches the forums. In a nutshell, Vista doesn't recognize me as an admin (even though it's MY computer). Thus, it was placing restrictions on anything going to Program Files. I discovered I could right click the DTR icon, go to compatibility, and set it to "run as administrator". This made the game run fine...but, with the default path to the Program Files/Ratbag, it would not run the patches, wouldn't let me extract mods, etc. So I uninstalled (yet again) and reinstalled to the c: drive under the games folder. Apparently this location has fewer security guards running around

. No problems after doing that.
PS - Thanks to the DTR2 download from this site for helping me with the idea (it installed to the "games" folder).