Well i did various things, so not sure if it was one thing in particular, or the things combined, but i reinstalled my drivers, and reinstalled VCRedist. Also putted the PhysX settings to CPU instead of automatic,
Most of these things require you have a Nvidia card, if you have ATI, i'm not sure about it though,
Also, make sure nothing is running in the background, no virus scanners or something like that, also if none of this helps, try reinstalling the game, i have heard it did the trick for some, although it did nothing for me,.
Also, if none of this helps, you might want to consider sending a mail to the support team
http://www.larian.com/dragonknightsaga_support.php Just follow the directions there, and they will get in in touch with you in a couple of days. Make sure to include a copy of your DxDiag though
Did you download it off steam??
