I feel like at this point it could be a good idea to just uninstall any and all Jedi Academy installations from your computer, delete all your MBII files, and then reinstall it all from scratch (while providing us with a little list of exactly what procedure you followed to install.)
Just to make sure everything was set up right in the first place, since some files and folders have been popping up in weird places (or missing entirely).
also, though you probably noticed this, Puppytine, that log references: "Mobile Intel(R) 4 Series Express Chipset Family." Which could be a main source of problems, as you mentioned about Intel causing crashes. Could be a case where mr. user just needs to try again later when he gets a computer with a real video card.