The direct3d9 rendering seems to work fine, cause it doesn't give any error about it. The error you get there is about the watermill map.
If I were you, uninstall the game from control panel. Then redownload both the patch and game installer(with torrent if possible). Install the game first, the patch 2nd with the new downloaded installers.
set the game rendering submode to direct3d9 inside the ogre.cfg.
And it should work.