I've finished playing Chapter 0 (got both James and Jaz to 4th level) but when I click on the Palace Gates to move to Chapter 1, they both walk in, the camera changes to a view where it's mostly the castle and then James and Jaz walk in from the bottom of the screen and face each other. Then it just sits :(
I can hit the Pause key and it will bring up the Pause screen, but it doesn't react to any other keys (including ESC) nor mouse input. I can ALT+TAB and kill it as well.
Anyone run across this? Are they talking to each other - all I hear is music? I've left if sit there for a few minutes - am I just not being patient enough - maybe they're having a romantic stare at the stars "moment" that lasts 3+ minutes?
Going to back up to an earlier save to see what happens but it would suck if I lost a bunch of XP/items if that "solves" it :(
=============== UPDATE ==========================
It appears this may be a Win7 issue. I took my saves to my laptop with XP and I was able to see the "cutscene" that was not being presented on my Win7 box. So, I'd say that to be safe you should stick with XP/Vista. Yes, I did try to put it into XP SP3 Compatibility mode as well.

i have this problem too and i'm running vista...is there a fix?

Add me as well, windows vista here. Same exact glitch. :(

Are you running as an administrator and have you installed it to somewhere other than Program Files? It should normally play a cutscene but it sounds as though it's unable to find/load the dialogue file (these are all present in the game folders as individual audio files). UAC issues are the usual suspect on Win7.

Granted, but how does that answer the people on win-vista having the same problems? I'll try reinstalling it to another folder, eh.

Well, unfortunately, reinstalling it to a new folder has created an entirely -different- problem. Now, when I start the game, after it goes through the cutscenes and plops me at the main menu, I can't start a new book. It won't let me put in the name of the book or hit 'accept'. I can hit space, which seems to <somehow> do it, but then its a black screen of kug narrating things <but no visual>. I can skip that too, which plops me obviously in the courtyard...I assume so anyways, SINCE THE SCREEN IS BLACK AGAIN. At which point no amount of input matters. :/

So, I'm stumped. :(