With the .3.16 version from the PS downloads page, there shouldn't be any manual patch needed. Simply install, then run updater to get a few new files and you should be good to go. I'd suggest you try to unistall the old version, make sure that it removes all files out of the folder you installed it to, make sure you don't have any psclient.exe programs running in memory (if you don't know how to kill these, just reboot your computer before going to the next step), then reinstall with the .3.16 client. Then run updater a few times to make sure you get everything. Then try to create a character.
About the graphics issue. PS uses OpenGL, not DirectX, so while your driver may be fine for all those other games, it may not support OpenGL properly. I suggest that after you get the game client running properly, and if you are still getting graphics issues, to try updating your graphics drivers.