There is an ongoing topic about the problem in the nVidia forums, go there and harass the developers: http://forums.nvidia.com/index.php?showtopic=104636&st=0

Also, provide feedback about the problem here: http://www.nvidia.com/object/driverqualityassurance.html

Hello all,
I'm running a version of Gothic 2 i bought years ago on my Windows 7 machine, with 2x Geforce GTX 295, with 195.62 nvidia drivers.
At first I was experiencing the aforementioned graphics issue. However, after playing around with the nvidia control panel, I discovered that disabling Quad SLI then re-enabling it caused the game world to run fine. The process has to be repeated if I reboot my PC.
Please note that I haven't a clue as to why this works, and it's possible that I'm ruining something under the hood by doing it (if I am there is no evidence of it.) If someone more tech-savvy than myself reads this, perhaps they can theorize why it seems to work?
~J

Please expand on this answer. Doesn't disabling quad SLI require that you already have 4 graphiccards in your PC?

He has 2 GTX 295 cards, that is essentially 4 GPU-s

Fixed the problem by installing 2nd OS , now when I want to play I just have to switch between windows 7 and XP.The guide in russian http://www.oszone.net/10237/Install_XP_7 , multiboot tool http://www.oszone.net/10617/ , if you don't know russian you might search google something like "dual boot xp and windows 7 installed first " . IIf guide is too complcated I can try to explain it shorter. Shink your HD , create partition about 4500-5000 mb , then install there win xp , now you're in XP. Then install drivers you need , gothic might be installed in drive where win7 is , it doest matter it will work. Then use miltiboot tool from to switch by restarting your pc.GL and HF gothic fans

Ugh, dual booting to play a game is a pain in the ass. Hopefully Nvidia or JoWood sorts this out. I almost bought the game but decided not to once I saw it won't work under Windows 7.

The problem has been fixed, but not by nvidia, but by using a direct3D to opengl wrapper.

Update found on: http://forums.nvidia.com/index.php?s=aa5b32639619ae554a888416e8e673a5&showtopic=104636&st=400
A technical advisor from nvidia says, and i quote:
"The fix for Gothic I and II is a major driver change which will also fix other DX7 class games. The fix was recently integrated into our Release 260 driver. We will soon be testing a few older DX7 games to verify the changes fix the issue. Hopefully assuming these changes worked, you will see fix in the next web release based on our 260 branch. "
The current driver version is 258.96, so I assume we will have a real fix within a month or two when the driver version hits 260.xx.

Here is a fix for the Win 7 x64 nvidia problem for Gothic 2;
http://www.worldofgothic.com/dl/?go=dlfile&fileid=168
The latest nvidia drivers also brings a specific fix for the Gothic games, but I haven't downloaded that yet so I don't know if it works. I can be found here:
http://www.nvidia.com/Download/index.aspx?lang=en-us
from the changelog of 258.96:
"Gothic 1/Gothic 2 –there is corruption and the game crashes. [621170]"
"GeForce 6100/6150: Gothic–there is flickering with a white screen when using the
default settings.[303552]"
Those should see you right.

Awesome, thanks for the links ioxles. My game is working perfectly with the patch from worldofgothic.

I did this and the DLL fix that is mentioned here..
http://www.zenithies.org/articles/5/gothic-i-gothic-ii-on-windows-7-64-bit-troubleshooting-game-wont-start-graphics-freezes.html
.so far so good, I'll let you know if something bad happens.