No, it's a normal version of Wizardry 7. Wizardry Gold is much larger, something like 40MB or more.
It's also not a bug you're describing, it happened all the time to me, too. Sometimes it requires more than one attempt of negotiating before things go up (or down to fight), especially at low Diplomacy skill. Just start another negotiation again until it comes to a result.
Charm only helps a bit, it doesn't guarantee a positive result.
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