Thanks for the tips! Yes, I am using patch 1.45.
I have tried dropping and talking and all the rest of the hints that I see on these boards. I will try again, I think...I have invested so much time trying the different fixes. I just hope that when the folks at Larian come back from vacation, I can send them my saved game and let them fix it! Otherwise it has been a crapshoot and I don't want to go sour on the game.