None of that is even necessary any more. Residual
is in a good enough state now. It has some issues--it's in a beta state right now--but it works, and has even fixed a number of bugs in the original game (including not being able to talk to Domino, usually, in Year 3). Just install Residual, make a folder for the game wherever on your hard drive, copy the .lab files from both CDs and grim.tab into it, put the patch executable in there as well (don't run it, just copy it), point Residual at the folder (it works like ScummVM) and you're golden.