amazingchestahead: Is your game in a "Program Files" folder, by any chance? Try reinstalling the game in a folder with a short file path, NOT in C:\ drive, and NOT a Program Files folder. G:\Games\, for example.
A cheap and quick "fix" is to copy the game folder ("Baldur's Gate", probably) to somewhere else, like a E:\ or G:\ drive, then double-clicking BGMain2.exe to launch the game. See if it works.
As for BG2 taking half the screen, I don't know about other cards, but in my case, I have a laptop with an Intel graphics card, so the fix is: right-click on desktop => Graphics Properties => Display => Maintain Aspect Ratio with Override Application Settings checked => Apply. There should be a similar option for other cards, I suppose.
No, I install my games in my Documents folder. I don't know that I have any E: or G: drives... documents is just under "This PC", which looks to be separate from C:, is that right?
The graphics setting fix worked for BG2, fixed it right up. Nice!