If you switch off the compatibility more, does it load again?
What about running the configuration program and hitting the reset button?
Had you run into this corrupt item bug, or were you just switching to 98/ME mode to be safe?
Try deleting the files within the dynamic folders (not the folders themselves, though);
'..\Beyond Divinity\Acts\Act1\Dynamic', '..\Beyond Divinity\Acts\Act2\Dynamic', etc.
These folders are used as a cache for the game. Files are created / copied there from the save game folder when you load, and written / copied to those folders when you save a game. The files will be re-created as required the next time you start Beyond Divinity. If there was a corrupt file in those folders, deleting the files should fix the problem.
Depending on where you installed the game and how user profiles are setup under Vista, the dynamic folder may be mapped to:
C:\Users\{account name}\AppData\Local\VirtualStore\Program Files\Larian Studios\Beyond Divinity\Acts\{Act Number}\Dynamic\
The saved game folder is similarly mapped. I assume this path is where you checked for the error.txt file; one may have been created in the Program Files folder (default install path is 'C:\Program Files\Larian Studios\Beyond Divinity'), but since the game is freezing rather than crashing, an error message may not get generated.
