Blocky rendering of the characters in dialgoues is a well known issue in The Witcher. It seems to happen only for Nvidia users.

See what I mean?
http://3mb.us/images/402_The_Witcher_merkw_rdige_Fehler.png

Only fixes known to me are switching back to an older gpu driver, which tends to break tons of other games. Any ideas?

I h ave nvidia card and I have this irritating blocky rendering on my 22'' inch monitor in 1680x1050 - but then I switched to my TV in 1920x1080, it was gone.

Somewhere I read that fiddling with Anisotropic setting may fix (like turning it off) it, but I never tried.

Ye , already tried that but sadly I didn't manage to fix it. Would like to hear froms oemone who managed to fix it.

Here are my specs btw:
Windows 7 64 bit SP1
Intel Core 2 Quad Q9550
Zotac GeForce GTX 260²
2x 2 GB DDR2 RAM at Dual-Channel mode

I am amazed this still was not fixed. Did you try turning of the blur in graphics settings? Long shot, but maybe it will help.

I had the same trouble when playing this game last year (I have the cd version).
I've got an ATI HD 5770. If any info comes up about a fix, it would be great!

It was gone because it seems to be a bug with the non 16:9 resolution. Your tv is in 16:9 and your computer is in 16:10.

I have tried to set af to 16 in the nvidia panel and in game but it doesn't make a difference :(.

Maybe recent AMD cards are also affected by this.

It seems that setting lighting effects to minimum fix the blocky dialogues problem but the game gets ugly without good lighting. A real fix without the game looking ugly would be nice.

Play in a 16:9 resolution to fix the problem (if running a 16:10 monitor). I stopped noticing the black bars on my monitor after about half an hour.

I get this with an ATI card during dialogue scenes if the Lighting is set to Medium or High. If I set Lighting Quality to "Low", the problem goes away. Honestly, if that works, just leave it at Low, because I don't notice much of a difference on "Medium" or "High" anyway (aside from the glitchy image).

I got this with my ATI HD 5770. I noticed it happens with 16:10 resolutions. My monitor's native resolution is 1680x1050 (16:10), and to don't experience this pixelated issue I run the game in 1600x900 (16:9).
I hope for a fix.

EDIT: A thread about this issue in the official forum: http://tw1.thewitcher.com/forum/index.php?topic=2867.0

The only known 100% solution is to put the lighting down to low, but that also makes the lighting look crappy, obviously. I've noticed that sometimes, while under the effects of Cat, the dialog screen is NOT pixelated, but renders just fine (with the blurry screen edges from the potion effect). I have no idea why that happens, and it isn't consistent either. I use an ATI 4670 by the way.

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I have a 5770 and I'm get lines radiating out of the characters, PC and NPC. I've tried all the settings mentioned above but no luck; any else have this problem?