Like it said, I downloaded the game from impulse. I did not pirate the game, not very helpful to automatically assume that. I have already tried redownloading it earlier but I will try again after deleting it from the .impulsereactor.
No. I've hosted Demigod LAN games with my friends and I copy-pasted my Program Files folder to their computer. When they come back after a new update has been released, Impulse tends to complain and lists a version # of 0.00 and doesn't know how to update properly. I was assuming you were having an issue like that since a friend gave you a coupon I imagined he had played a few LANs with you so that's how you initially "acquired" your copy of demigod.
However, for some reason you have a version from the future. The current most up-to-date version is 1.20.147.
If you are computer literate, this solution worked for me on Vista with another game:
Go to C:\Users\<userName>\AppData\Roaming\Stardock\Impulse\RegistrationsCache.xml
on my XP machine it was C:\Documents and Settings\All Users\Application Data\Stardock\Impulse\data\ImpulseNow_installed.xml
Find the tag that looks like: <Name>Demigod</Name>
Scroll down until you see:
<Ver>
<Major>1</Major>
<Minor>20</Minor>
<Revision>147</Revision>
</Ver>
Make sure that is correct.
A few more lines down you should see:
<InstalledVersion>your version number</InstalledVersion>
<UpdateAvailable>false</UpdateAvailable>
<UpdateVersion>1.20.147</UpdateVersion>
Make sure your UpdateVersion is 1.20.147 (not whatever you had) and then make sure your InstalledVersion is as well.
Just changing the InstalledVersion to 1.20.147 should trick ImpulseReactor into thinking you have the correct version and enable you to play online. If you get "Critical Error: Desync detected!" You seem to have been "gifted" with a new, unreleased version of demigod.
If that still doesn't work (or you are too scared to try), I suggest that you contact support. I know that they have been tweaking around Impulse Reactor and it's possible your account id has been messed with somehow.