(If the patch doesn't find the installation folder simply do it manually.) When it's done apply 'Artificial Academy 2 HF Patch' do the exact same thing.
Now open '3- Patch' click 'Artificial Academy 2 DLC HF Patch' keep pressing next and choose recommended.This will apply all the paid DLC into the game. Open '2- Updates & DLC' and copy the folders AA2 and AA2Edit into the game installation folder e.g 'C:Illusion' it will ask you if you want to replace the folders, say YES, if it doesn't prompt you to replace it you're doing something wrong.To run the game you need to mount DISK1.mdf again and right-click C:illusionAA2AA2Play.exe and select Run with Japanese locale.Wait while the game finishes the installation.About two thirds through the setup will ask for DISK3: Mount DISK3 with Daemontools Lite, wait a few seconds and then click OK.
You must be registered to see the links): Mount DISK2 with Daemontools Lite, wait a few seconds and then click OK.