The relevant section seem to be:
[./override/arghai.cre] loaded, 1148 bytes
ERROR: illegal 2-byte read from offset 1148 of 1148-byte file arghai.cre
ERROR: [arghai.cre] -> [override/arghai.cre] Patching Failed (COPY) (Failure("arghai.cre: read out of bounds"))
Stopping installation because of error.
What error do you get if you try English instead?
I would also recommend installing both BG1 and BG2 outside your Program Files-folder as this is a protected folder and doesn't work well with old programs.
Similar issues have been reported here and here but no clear solutions as far as I can see.
The problem seems to be solved after I re-installed my BG series into "D:/Black Isle" rather than "D:/Program Files/Black Isle". Thanks for your help!