That looks like being one level to deep for the patch.
..\Ziegler-Tools\Ziegler-Tools\.. isn't right. Normally the patch should find the location of the TransDEM installation automatically, but that particular patch appears to have problems getting it, if it's not the default. When you manually point to the location while running the patch installer try one level higher.
Ah ha. I think when I pointed to the location, the install had added a second layer of Ziegler-Tools to the path. I just corrected, and the install completed correctly this time. Thanks.
I then successfully unzipped and ran install for Update Trainz Edition 2.5.* (64bit), Ground Textures for T:ANE .
I had previously reported this problem, have downloaded again, deleted the second directory Ziegler Tools and re installed, it reported patch was already installed.
Another question as I am in the process of installing the latest release of T:ain, do I also need to update with the T:ain version?