Yeah i've tried everything that I can think of to try and get past the problem but alas no success.
Even if I started again there is no gaurantee that I wouldn't encounter the same glitch.
So like you I hope that they make a patch for the game soon. Otherwise i'm going to return it for a refund as it's not fit for purpose. I also bought it as a gift for a friend but will return that now.
Strangely enough I actually got past this point in the original release and encountered less problems with the game apart from the terrible frame rate of course.
I wonder if it is related to an achievement for summoning the demon as whenever I received previous achievements for this game there is a long pause in the game play.
It is such a shame as I was really enjoying the game and imo it was the best RPG on the 360.
