Don't know if anyone else is having this happen but since installing the 1.41 patch last night my heros don't seem to be taking any damage.
I went into Citadel Lvl 7 after installing patch and was able to fight all the gargoyles and elemental without taking any damage at all.
This was strange because before the patch the two gargoyles on level 3 beat the fool out of me.
Also still have strings showing up in my conversation logs and now after patch 1.41 have $ERROR$ strings all over my quest log.
Hope we can resolve all this without making folks start games over. If starting over is required we should get a rebate on cost of game related to time spent playing and having to start over. Sorry, but I am really disappointed in this game after loving Divine Divinity, which kept me up several nights playing.