Can you please right click on the game in your library, select properties, tab to local files, then click "verify integrity of game files..."
The path in your screenshot is correct and should work (it is in the same format as the heavily tested 64 bit version).
Unfortunately I don't have a 32 bit machine to test on right now but as far as I can tell during the weekend, it should work perfectly unless the files are messed up somehow.
If you put that path without the freefalltournament32.exe into explorer, can you show a screenshot of the files that you find there?
You could also try uninstall then reinstall.
Feel free to PM me with any questions or information that might help, but remember it is Sunday here, so I may be slow to reply!