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Is it a mod that you downloaded?
I clicked to start that scenario, and got that same message that you quoted above ("Mods\Crusades\ is an invalid mod directory, ignoring."). Then when I clicked to to play Civ 4 again, it seemed to launch into this scenario:
http://images.akamai.steamusercontent.com/ugc/107354651802862200/975012201E1C4D8394F86E2BC5F6E75A59DB2229/
Have you got it working yet?
If you want a world-spanning game which includes the crusades, then I recommend the Earth 1000AD scenario (either the Civ 4 version or the Civ 4 BTS version).
you could look at the mods forum on CivFanatics for updated versions