This was probably more than just a no-cd crack. Most retail games are protected by some type of packing system (meaning the .code section of PE executable is encrypted on the hard disk and then decrypted once in memory). The cracker has to dump the .code section to the disk once it is unpacked while in memory and then rebuild the executable (hence the ability to put the Myth logo in the file) to run properly (and probably cracking the additional no-cd checks).

So this is could be bad, real bad, since it's a executable that was basically rebuilt from a memory dump, not by a compiler.