Anyone knows if this patch is compatible with Windows 98SE?

I don't know why this happens on your end, but patch 3 is completely unrelated to the installation patch AFAIK. The problem with Outcast is that the installer looks for DirectX 6 (or could it be 6.1?) and whether it is installed or not. If not, it prompts the user to install it, if not... it reverts the entire installation 😳!
The installation patch is supposed to fix that, AFAIR you have to extract the archive in an unrelated location on system (Desktop is fine) and run it with the CD inserted in your system. The new installer looks for files on the CD and takes over.
Are you saying that you followed this procedure and it didn't work? Could it be that the installer is looking for the CD in drive letter D: and you have it somewhere else (either physical or through image mounting?). Might wanna check on that.

Do keep in mind however that a Pentium 2 333 will struggle great with Outcast. Even top of the line CPUs of the era such as PIII/Athlon 500/600 will have a hard time maintaining 30fps with all the bells and whistles turned on. I've found that you need something like a PIII 1GHz to achieve something like that and even a Tualatin 1.4 can't hit 60fps at all times. Yeah, that game was kinda nuts! 😊

Hope that helps in any way!

Hi!
I noticed I have 2 CD-rom drives. The patch didn't reckognized my D drive but it did find the E drive. That's strange because D is my main drive and works for all the other games. Anyway, seems that was the problem and thank you very much for your help!
I have played Outcast now and it runs really great without any flaws or dropdowns.

There exists a patched version that runs the game without any cd.
If you put the original cd in a drive, you will get the intro and the music.

it does also work if you have an image of the audio-cd but only
with wdm-drivers in win98se. the patch/crack kills the audio-cd feature
of a mounted image.

This game is really a very big CPU limited game! I have tried it out on my Athlon 1000 T-Bird Slot A machine with Win 98 SE and the latest official Outcast patch 3. It is playable with 512x384, highest settings, but only in cinemascape. Without cinemascape no more really playable with a lot of action and details on the screen. I need to find some .ini tweaks or should play it on one of my other retro machines with an 2GHz Athlon XP T-Bred.

The game is 3DNow! and SSE optimized?