I think you would be partially correct on a couple of your items. The original game took over 4 years to develop and Microprosed forced them to release the product early. Sound familiar? Anyways the game was released and several patches followed which brought the game up to version 1.08. Falcon got pretty good ratings from the magazines at the time. Soon after the team was disbanned and someone released the source code on the internet.
I will spare you the next 10 years modifications that were done by various groups of which BMS is one of them. The list of changes is simply incredible.
Here is the History of Falcon 4 and all the different groups that made changes. It's a PDF.
For this Mod you will need to have the original disk as it looks for the original exe then the patch will install correctly. It doesn't use anything from the original game.
It installs and runs flawlessly on Win 7 64 Bit. If running Nvidia stay away from the newer 280.XX drivers. It doesn't like them so much.