I 've got the exact same problem.
talk to dwarven king, ask to get my stuff back => Desktop <img src="/ubbthreads/images/graemlins/disagree.gif" alt="" />
it also happens when i fight the brawler in the bleu boar inn. i loose and i get back to desktop <img src="/ubbthreads/images/graemlins/disagree.gif" alt="" />..
there goes an other 2 hours worth of exploring .. i really should save more often.. but my autosave also causes a return to desktop <img src="/ubbthreads/images/graemlins/disagree.gif" alt="" /> <img src="/ubbthreads/images/graemlins/cry.gif" alt="" />
sounds like you should backup your savegames and do a reinstall...
here's a quote from RaZe..on the same subject.
Maybe a clean re-install would help? Zip or otherwise backup your saved games folder to another location first, just in case. Then un-install, re-boot, shut down all non essential programs (especially anti-virus), re-install the game. Maybe start the game and see if you can quick save(games saved under the 1.34 patch will not work in game version 1.29, but you can try in a new game). After this, re-boot, shut down all non essential programs, install the patch, re-boot, shut down all non essential programs, start the game. This procedure is a bit over-cautious, but the best way to avoid install problems.
ther ya go.... <img src="/ubbthreads/images/graemlins/wave.gif" alt="" />
thx raze <img src="/ubbthreads/images/graemlins/biggrin.gif" alt="" />
