There are a number of solutions you can try, but it's most likely related to codecs.
• You can try to fix the codec issue with the following tool :
http://www.softella.com/dsfm/index.en.htm . Run it and click on the troubleshoot tab. There you will find an option to restore codecs.
• Installing ac3 codec :
http://ac3filter.net/• There is a section on what codecs our game uses in this support forum thread:
http://www.larian.com/forums/ubbthreads.php?ubb=showflat&Number=423177#Post423177 (see section “* If the intro movie does not play, you need to:”)
• Turning off playing of videos. To do this, go to the file %your installed directory%\divinity ii - dragon knight saga\data\globalswitches.xml and change the value PlayVideo="1" to PlayVideo="0” on the bottome line. Then save the file and try the game again
• If you cannot change the file or only want to stop the skill videos, you can rename the skills videos folder found in C:\Program Files\Steam\steamapps\common\divinity ii - dragon knight saga\data\Video\. Simply rename the folder “Skills” to “Skills2” for example and the game will not play any of the skills videos
• Uninstall ffdshow software if you have it installed
