As you have message not translated NSTL_ERROR_INITIALISE_SCHEMA
I suspect that you are using a Joomla that is not english.
I suspect that the /installation directory that was present in your original joomla is not the same as the one that is present in JMS and that is restored when the /installation directory does not exists.
I suggest that you remove the current /installation directory and that you restore the /installation that is present in the joomla package (zip).
After that, you can execute again the "check partches" and a file should be patched.
Retry creating the slave site and it whoudl work.
You can also get the latest version 1.2.97 and retry with the latest Joomla 2.5.9
See FAQ for the procedure to get the latest version.
www.jms2win.com/en/faq/faq-joomla-multi-sites#cat-122