I think you're getting slightly confused. The server does not require GTA at all in order to run - it just processes network information. There is a patch available for the server to fix some bugs.
The client handles everything else. You can connect to a server with either 1.1 or 1.0. This is because the 1.1 patch only fixes one bug related to graphical corruption. If you don't experience graphical corruption, you don't need the patch (I think it was fixed in subsequent graphics driver releases). This is in contrast with GTA3, in which 1.1 made significant changes, and therefore MTA only works with 1.1.