Hmmm! Have you checked for a patch? (Sorry, had to ask)
Have you installed the latest drivers for you video card?
(Turned off anti-aliasing if its on. Quincunx especially can cause problems. If you dont know what this is, its probably not turned on)
Have you checked the Arx Fatalis forums?
Im sure you've tried all those but they are what I would do. Good luck!
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