Then choose the option to continue the install. Although the test will fail, the program will install. The hardware test is only a convenience to make sure your system will meet the minimum requirements. It will have no bearing on the program's ability to operate if the minimum requirements are met. A patch is a program that updates the game files on your CD, usually to fix bugs discovered after the CDs were printed.
Patches can also tweak play balance, or add new options or features to the game.
Nope, the CD is required to run it, even with the Full install. Biggest or Fastest install would be more accurate. Direct3D. Most 3D cards seem able to run Trophy Bass nicely in Direct 3D. Two definite exceptions are the Matrox G400 and S3 Virge. To date, the problems with these cards are not fixable, and likely will not be patched anytime soon. If you have one of these cards, running the game in software is your best bet.