the igame.iff in a game folder isn‘t correctly loaded by iGame. As you can see in Snoopium, the igame.iff in tebgame folder is loaded, but instantly „overwritten“ by PROGDIR:igame.iff.
You can check this, by deleting the igame.iff in progdir while iGame is running. Than igame.iff from folder is loaded (if exists, otherwise it loads one from internet?). With deleted igame.iff in progdir, iGame isn‘t starting anymore.