Very bizarre Bloodmoney issue, NPC's are frozen but everything else is fine.

[Dradeel]

I am having a very strange problem. I can play the game perfectly fine with no bugs or strange occurances of ANY kind except for this one thing: none of the npc's or actors will move or do anything. They are all stuck in a permanent position with their arms stretched out. This goes for things like birds too. They won't do anything, they just stay like that and I can't interact with them at all. For example, the first mission, the birds don't fly away when I get near them and the guard never comes to the gate. I can play the demo just fine. No problems there. Here are my specs:

Dell XPS Gen 5
Dual-Core Pentium D Processor 840 (3.20GHz)
Windows XP Professional
ATI Radeon X850 XT PE
Sound Blaster Audigy 2 ZS
2GB SDRAM

I have downloaded the most recent drivers for my hardware and have set my computer to only use one processor on the game since it wasn't designed to handle two. I have emailed technical support about this issue but they said they would get back to me in two days and its been over a week now with no response. Does anybody have any idea what the problem is and how to fix it? This is extremely frustrating, even more so because tech support isn't responding. Here are some pictures:

Notice the birds:


...and the guard:


Everybody's permanently stuck that way.

[BioFreak]

I am having the same error. All NPC's are stationary... Did you manage to correct the problem?