No idea what item 1 is - don't even understand the words. Item 2 is fine. If I want to start fresh I usually install from the CD (1.14?) and then apply the 1.29 upgrade.
If you can contain your patience a little longer I'll get home soon, check out GOTM22 on my setup, and see what I can find out from your info and from the gotm35 save. I'm out tonight so won't be able to test play gotm35 until tomorrow.