ok, here's my update.
I applied patch 3. Now when it froze upon clicking Online Arenas I was able to see the firewall message in my application bar after hitting the windows key, but still could not move my mouse cursor to select it. Couldn't see this before.
On my firewall, I don't have to allow AH back through, I have to approve the replacement of the program.
Well, I waited, and applied patch 4. Now I couldn't see the app bar after hitting the windows key, and the freeze was as it was the first time.
Finally, I realized that since this firewall requires approval of the program being replaced, that the key to the whole thing was the MD5 binary that it keeps track of.
So, I deleted the MD5 binary for aceshigh.exe and started up the game. And everything was working fine.
Went back to the firewall's MD5 list, and AH had it's new entry in the MD5 list.
Check that parameter in case your problem is similar.