1st post - yay me.

I had a similar problem, it's a common theme in Windows 7 for some reason.
My cinematics audio was working, but not the in-game sound.

Here's how I fixed it.



It happens with X3: Terran Conflict, all the Elder Scrolls games and a bunch of others...

Simply go into your "all programs" menu from the start button, the FFDSHOW folder and in both the Audio and Video decoder settings application in there, go into the Direct Show option in the menu on the left - it will update the right hand side of the whole dialog box.

There you will see "don't use FFDSHOW in: " Simply click the Edit button next to it and browse to your Divinity II exe. Hit apply - will work properly from there on in.

FFDSHOW is usually in every codec pack you can d/l. Klite or Shark007 (which I use), and many more.\
It's a common problem with alot of games these days. Pain in the fricking bum if you ask me.