I get the same problem. Also, the last time I logged in I had some active graphics while in the lobby. By this I mean that some pixel lines were wavy and in motion. Ahh, these updates are all sorts of screwy!
Ok, I just reinstalled the FC1, and all went well. But at the end, when it came time to read the readme and load myth from the install program, I get the following message (I de-selecting reading the readme and tried to just run myth from the install program):
Could not find all foundation lines, insert your CD or install
Before you didn't need the cutscenes folder. Myth would still load, just leaving an error message in your log file. Now you must have the cutscenes folder in the same folder as your myth executable, or have the CD in.
you are not force to us the CD anymore, but you must do a largeinstall if want to play without the CD. Also the large install doesn't copy the prolog cutscene also, you need to manual copy that if you want to prolog movie.