hmm mgxd.init error aye
That would be caused by GXDCompress.dll version being invalid compared to what the game was compiled to use.
If they have updated GXDCompress.dll and your using my one when it should be newer it wont work

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Get the source code for the zlib version of GXDCompress.dll the game uses then add a DLLMain method and do a LoadLibaryA(" 12sky2.dll "); or w/e its called
Then compile that and rename the zlib1.dll to GXDCompress.dll and BAM