I had the exact same problem, although wandering out to the town gate and back again seemed to cure the NPC side of it. I still can't talk to Madora though...but I haven't tried heading to the lighthouse yet which I'm assuming will clear it.
EDIT: ah well, so much for that assumption! I've completed the Desdemona quest and Madora is still mute. Other NPC interactions are fine though.
Last edited by Oztrich; 09/04/14 02:47 PM.
