I moved my character saves to a temp directory, uninstalled DD, installed the new version, moved my saves back to the savegames directory. . . . works great . . . sees and loads my old saves . . .=)
Edit: I manually deleted the old DD directory after the uninstall and before new install.

I also assumed unistalling the previous version was pretty much mandatory as the new installer doesn't 'patch' the previous version but installs the new (whole) version instead.
Working fine at my end too :) which means a couple of other games will be put on hold :(

Also confirming that you have to delete your old DD folder before you install the new one; I didn't use the pre-packed uninstaller so you can just drop the whole thing in you 'Bin. Make sure you hold onto your save folder!
Also, the Config tool now has 1680x1050 as a resolution! Sweet.

I believe deleting the DD folder without uninstalling leaves some registry entries that might not be overwritten by the new install . . . every Dev is different in how he handles existing registry entries and existing folders. I would uninstall using the uninstaller and manually delete any folders that it may leave behind . . .just to be on the safe side . . .=)
Backup your save files of course . . .=)

I uninstalled the game using the uninstaller in the DD folder, kept savegames and then installed the new version. Worked just fine and the bug I stopped playing the game because of is now fixed. (Attacking ogre boss no longer crashes the game)

where do you get the updated version ? for dd

Simply redownload the Divine Divinity installer and do the reinstall. There is no separate patch.

A new readme with an updated changelog would have been proper.

I second this notion.

Damn it still won't work! My old save from the CD version still always crashes whenever I load it with the GOG version and then try to save again.
Looks like I don't stand a choice but to stick with the CD version. There goes 1.6 gigs wasted for nothing...

Ouch. That's a damn big "patch". I feel sorry for people with caps.

Thirded.

STILL crashes every 15 to 20 minutes. Ripoff.

My game is still crashing occasionally, but not nearly as often as it had been prior to this patch. Now it seems to CTD every 25 minutes or so, but I can deal with that to hear my pillow-bosomed lady battlemage say, "Sooe-ree, I can't use that!" when I click on boulders.