Well, guys, probably you are playing a copy from the bad stock. Mine, US release, is perfectly OK. I have never had any problems at all.
Bad Stock?
I just think the game isn't really optimized for the xbox. That being said, with CDV out of the picture I think it highly unlikely that Larian could convince another publisher to take this game on considering the failure of Ego Draconis sales-wise in the US. This of course sucks.
