I understand there are a number of patches:

1.29f for CIV III itself from InfoGames & 1.04f for PTW from Fixaxis.

Is there a patch for PBEM and where is it located ? I have been told there is and I can't find it anywhere.

http://www.civfanatics.com/civ3patches.shtml

It's on the main page on the left, 2nd link under Civilization III ;)

I see only 1.04f and 1.29f. Is the PTW 1.04f the PBEM patch too ? Sorry to be such a pain.

Latest Patches:

You only need to install the latest patch since it includes all fixes from previous patches.

Play the World Patch v1.04f (PC, 6.9 MB): Mirror 1 Mirror 2

Civilization III Patch v1.29f (PC, 9.9 MB): Mirror 1 Mirror 2

1.29f is for Civ3 Classic. 1.04 is for PTW.

WarningU2
You don't need a patch to play PBEM. It comes standard with PTW. However, there is a patch available for PTW, which you have already located (1.04f).

Of course, there are a few bugs in PBEM that I hope will be fixed when the next patch is released, but these bugs won't prevent you from playing a game. :)