I just recently bought a copy of BF2 and downloaded from steam, so it is a steamapp.  I had no trouble installing FH2 all the way p to your current clicent, but when I click on FH2.exe, Steam launches the game, but I get the WARNING UPDATE YOUR SHOTCUTS - HIT ALT+F4 screen.

Im fairly certain that steam is causing some of the problems but I have no way of lauching BF2 or FH2 without running Steam as far as I know.  I would REALLY appreciate some help is this mod is one of the main reasons I bought BF2 (again - lost my DVD a log time ago).

IF you need PC specs I will post them
QX9770 Quad Core Extreme 3.2GHz
4 Gigs of Corsair XMS Ram
2 x GTX280 in SLi using HDMI to my 50" Plasma
Creative Soundblaster X-FI Titanium running Optical to my home receiver
1200 Watt PSU