Tropico Backup

[Chaotix]

I have heard I need to copy the CD to the hard drive in order to burn Tropico, but I'm unclear what I do next. The posts I read didn't make the process clear. Do I:
1)
Copy the CD to the Hard Drive
Apply the 1.02 patch
Burn the files
Install the game.
Apply the 1.02 crack
play the game
OR
2)
Copy the CD to the Hard Drive
Burn the files
Install the game.
Apply the 1.02 patch
Apply the 1.02 crack
play the game

which one? 1 or 2??